The Data for a Paint Manufacturing Company for February Are

question 139

Essay

The data for a paint manufacturing company for February are as follows:
Price discount policy:
$0.25 discount per gallon in excess of 20,000 gallons (up to 40,000)
$0.35 discount per gallon in excess of 40,000 gallons
Required:
Prepare a report showing the customer-specific contribution.Present one column for customer-specific contribution and a second column showing customer-specific contribution as a percentage of customer revenue net of

---

Definitions:

Marginal Cost

The cost for the creation of one extra unit of a product or service.

Marginal Revenue

The extra revenue obtained by selling an additional unit of a product or service.

Marginal Revenue

The additional income gained from selling one more unit of a product or service.

Marginal Cost

The supplementary expenditure arising from the creation of an additional unit of a good or service.