Materials Corporation Sold 12,000 Units of Its Product at a Price

question 92

Essay

Materials Corporation sold 12,000 units of its product at a price of $67 per unit.Total variable cost per unit is $54.94,consisting of $45.05 in variable production cost and $9.89 in variable selling and administrative cost.Compute the total contribution margin.

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Definitions:

Office Furniture

Items and fixtures used in an office setting for working and storage purposes, including desks, chairs, and file cabinets.

Straight-Line Method

A way of calculating depreciation by evenly spreading the cost of an asset over its useful life.

Resale Value

The projected value at which an asset can be disposed of after its life of usability has ended.

Office Furniture

Items and fixtures used in an office setting to support various work activities and tasks, such as desks, chairs, and file cabinets.