Decko Industries Reported the Following Monthly Data What Is the Company's Contribution Margin for This Month If

question 63

Multiple Choice

Decko Industries reported the following monthly data.
$$\begin{array} { l l } \text { Units produced } & 52,000 \text { units } \\\text { Sales price } & \$ 33 \text { per unit } \\\text { Direct materials } & \$ 1.50 \text { per unit } \\\text { Direct labor } & \$ 2.50 \text { per unit } \\\text { Variable overhead } & \$ 3.50 \text { per unit } \\\text { Fixed overhead } & \$ 234,000 \text { in total }\end{array}$$
What is the company's contribution margin for this month if 50,000 units were sold?

• A) $1,326,000
• B) $1,716,000
• C) $1,275,000
• D) $1,650,000
• E) $1,450,000

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Definitions:

Financial Ratios

Quantitative measures derived from financial statement analysis used to gauge a company's performance, liquidity, leverage, and profitability.

Marketing Metrics

Quantitative measures used by marketers to evaluate, compare, and track the effectiveness or performance of marketing strategies, campaigns, or activities.

Premise Control

A security or management concept ensuring that the base assumptions underlying strategies or plans remain valid over time and are monitored for changes.

Fixed-Charge Obligations

Financial commitments that a company must pay on a regular basis, such as loans, leases, and other fixed expenditures, irrespective of its business performance.