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Title: A packaging company produces a variety of cardboard boxes in an automated process. Expected ... Post by: ashly138 on Nov 5, 2017 A packaging company produces a variety of cardboard boxes in an automated process. Expected production per month is 160,000 units. The required direct materials costs $0.30 per unit. Variable manufacturing overhead costs are $24,000 per month and are allocated based on units of production. Direct labour is budgeted to be $6,400. The company only produces based on customer orders, so all production is considered sold as it is produced. Revenue for the month will be $240,000. What is the budgeted contribution margin per unit?
A) $1.50 per unit B) $1.31 per unit C) $1.16 per unit D) $1.05 per unit E) $1.01 per unit Title: Re: A packaging company produces a variety of cardboard boxes in an automated process. Expected ... Post by: btpsand on Nov 5, 2017 E
Explanation: E) ($240,000/160,000 units) = $1.50 per unit ($24,000/160,000 units) = $0.15 per unit ($6,400/160,000 units) = $0.04 per unit $1.50 - [0.15 + 0.04 + 0.30] = $1.01 |