Last Year, Harris Company Manufactured 17,000 Units and Sold 13,000

question 11

Multiple Choice

Last year, Harris Company manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows:

Sales were $780,000 for the year, variable selling and administrative expenses were $88,400, and fixed selling and administrative expenses were $170,000. There was no beginning inventory. Assume that direct labour is a variable cost.
-What was the contribution margin per unit?

• A) $17.50.
• B) $25.70.
• C) $27.50.
• D) $32.50.

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Definitions:

Balance on Goods

Balance on goods refers to the difference between a country's exports and imports of physical products, excluding services.

Services Surplus

Services Surplus describes a situation where the value of exported services of a country exceeds the value of its imported services, contributing positively to its trade balance.

Capital and Financial Account

Refers to parts of the balance of payments where capital transfers, investments, and financial derivatives are recorded.

Money Inflows

Financial resources entering a particular entity, such as a business or country, over a period of time.