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

question 127

Multiple Choice

Last year, Harris Company manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows:
$\begin{array} { | l | r | } \hline \text { Direct materials } & \$ 153,000 \\\hline \text { Direct labour } & 110,500 \\\hline \text { Variable manufacturing overhead } & 204,000 \\\hline \text { Fixed manufacturing overhead } & 255,000 \\\hline\end{array}$ 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? Do not round intermediate calculations.

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

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Definitions:

Innovative Leadership

A style of leadership that focuses on encouraging creativity, experimentation, and new ideas within an organization.

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The process by which societies or groups within them undergo significant alterations in their cultural practices, beliefs, or values over time.

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The shared values, beliefs, and norms within an organization that shape its practices and behaviors.