Krepps Corporation Produces a Single Product

question 10

Multiple Choice

Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows: Sales totaled $825,000 for the year, variable selling and administrative expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There was no beginning inventory. Assume that direct labor is a variable cost.
The contribution margin per unit was:

• A) $23.80 per unit
• B) $31.00 per unit
• C) $25.60 per unit
• D) $19.00 per unit