QUIZ NA Queshon 17 Nol yet Walsh Corporation has provided the tollowing informat
ID: 2533962 • Letter: Q
Question
QUIZ NA Queshon 17 Nol yet Walsh Corporation has provided the tollowing information 9 10 Points out of 3 e - Prologue F Fog quesion 17 18 Cost Cost per o-Ch2&3 per Unit Period Direct matenals Direct labor Variable manufacturing overhead Fxed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $ 7.05 $ 350 1.65 ee-Ch 5 Finish atte EXAM1 ons Manual 11,000 $1.00 $ 0.40 $ 5,500 If the seling price is $18 70 per unit, the contribution margin per unit sold is closest to Select one 0 a $180 b S4.30 c. $5.10 ?d.$8,15 Quesion 18 walsh Corporation has provided the following data concerming last month's operations ??ao @?Explanation / Answer
Sales per unit
$ 18.70
Less: Variable cost per unit
Direct material
$ 7.05
Direct labor
$ 3.50
Variable manufacturing overhead
$ 1.65
Sales commission
$ 1.00
Variable administrative expense
$ 0.40
Total variable cost
$ 13.60
Unit contribution margin
$ 5.10
Contribution margin per unit = Sales per unit – variable cost per unit
= $ 18.70 - $ 13.60 = $ 5.10
Hence option “c. $ 5.10” is correct answer.
Sales per unit
$ 18.70
Less: Variable cost per unit
Direct material
$ 7.05
Direct labor
$ 3.50
Variable manufacturing overhead
$ 1.65
Sales commission
$ 1.00
Variable administrative expense
$ 0.40
Total variable cost
$ 13.60
Unit contribution margin
$ 5.10