Walsh Company produces a single product. Last year, the company manufactured 25,000 units and sold 22,000 units. Production costs were as follows: Sales totaled $440,000, variable selling and administrative expenses were $110,000, and fixed selling and administrative expenses were $45,000. There was no beginning inventory. Assume that direct labor is a variable cost.
-The contribution margin per unit would be:
A) $15.00
B) $11.00
C) $8.00
D) $6.00

Question

Walsh Company produces a single product. Last year, the company manufactured 25,000 units and sold 22,000 units. Production costs were as follows:  Sales totaled $440,000, variable selling and administrative expenses were $110,000, and fixed selling and administrative expenses were $45,000. There was no beginning inventory. Assume that direct labor is a variable cost.
-The contribution margin per unit would be:
A) $15.00 
B) $11.00 
C) $8.00 
D) $6.00

Quizplus · Accepted Answer

The Answer of Walsh Company produces a single product. Last year, the company manufactured 25,000 units and sold 22,000 units. Production costs were as follows:  Sales totaled $440,000, variable selling and administrative expenses were $110,000, and fixed selling and administrative expenses were $45,000. There was no beginning inventory. Assume that direct labor is a variable cost.
-The contribution margin per unit would be:
A) $15.00 
B) $11.00 
C) $8.00 
D) $6.00

Walsh Company Produces a Single Product