Ask Experts Questions for FREE Help !
Ask
    ldelk1986's Avatar
    ldelk1986 Posts: 1, Reputation: 1
    New Member
     
    #1

    Apr 10, 2014, 10:06 PM
    Help with calculating cm per unit
    Zeitgeist Company manufactures silicon sleeves for MP3 players. In August 2011, Zeitgeist began producing the colorful sleeves. During the month of August, 16,000 were produced, and 14,750 were sold at $6.95 each.
    Sales commission was 8% of sales
    Direct Materials $ 26,880
    Direct labor $ 6720
    Variable overhead $ 5920
    Fixed overhead $ 28,160


    What is the contribution margin per unit? Round to the nearest cent

    I have tried everything...
    formula I've been using to try and figure it out is cm/unit=sales price/unit - vc/unit
    6.95-2.98... ive tried 6.95-2.47 and many others... help, please!
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
     
    #2

    Apr 12, 2014, 09:39 PM
    Unit sales price 6.95
    Variable mfg costs
    DM 26880
    DL 6720
    VOH 5920
    Total 39520
    Unit cost 39520/16000= (2.47)
    Sales commission 8% = (0.556)
    Contribution = 3.924

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Calculation of unit price, unit cost and unit sold [ 1 Answers ]

What are the differences between unit cost, unit price and unit sold

Calculating unit cost [ 1 Answers ]

J Plc is considering investing £1m in a new project to manufacture and sell a brand new toy. The following estimates have been made: Sales (number of units) 50,000 in the first year, rising by 10,000 units per annum Life of project 4 years Unit information: £ Price 25 Material cost 10...

Live in a mobile home with intertherm heat and air unit the unit outside unit has bee [ 1 Answers ]

Live in mobile home with an intertherm unit outside unit is no longer running didn't know if it even needs to be running with the heat


View more questions Search