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How do I find the selling price?
Given
Sales (in units) 60,000 Selling price per unit X Manufacturing costs per unit: Materials 6 Direct labor 4 Overhead Variable 4 Fixed 3 Total 17 Selling and admin. Expenses per unit Variable 4 Fixed 2 Congtribution margin percentage required 30% of total sales Find selling price per unit? What is the selling price? |
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If you look at the definition of contribution margin, you will see it is the unit price minus the unit variable costs. In the lists of costs given, look only at the variable costs per unit. When you have this total, you can figure out the price. If you want to post your work and answer, we can check it for you. Thanks. |
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