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The company produced 7,771 units and sold 2,111 units for $628 each. Variable manufacturing costs were 352 per unit. Fixed manufacturing costs were $4,969. Variable selling and administrative costs were $24 per unit sold and fixed selling and administrative costs were $2,811. There was no beginning inventory. What is the contribution margin? As always, no $ and commas.

Respuesta :

Answer:

The contribution margin is 531 972

Explanation:

Computation of contribution margin

The contribution margin is revenues - Variable costs

Sales  Revenue   ( 2 111 * 628)                                                    1 325 708

Variable manufacturing costs ( 2 111 * 352)                                  743 072

Variable Selling and Administrative costs ( 2 111 * 24)                   50 664

Contribution Margin                                                                       531 972

All costs of a fixed nature in manufacturing or selling and administrative expenses are not considered in determining the contribution margin

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