Mid Term Exam (Chopters 1, 2,3, 5, 7 and 8) 2 Kogler Corporation\'s relevant ran

Question

Mid Term Exam (Chopters 1, 2,3, 5, 7 and 8) 2 Kogler Corporation's relevant range of activity is 7000 units to 11,000 units. When it produces and sells 9,000 units, Its average costs per unit are as follows: Cost per $4.85 $4.20 $1.55 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative $9.00 $3.15 $1.80 $0.50 50.45 If the selling price is $25.00 per unit, the contribution margin per unit sold is closest to: $13.45

Explanation / Answer

Contribution margin per unit = Selling price per unit-Variable cost per unit = 25-(4.85+4.2+1.55+0.5+0.45)= 13.45

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