Macy Corporation's relevant range of activity is 4,000 units to 8,000 units. When it produces and sells 6,000 units, its average costs per unit are as follows:  Average Cost per UnitDirect materials$4.95Direct labor$3.25Variable manufacturing overhead$1.45Fixed manufacturing overhead$4.20Fixed selling expense$1.05Fixed administrative expense$0.60Sales commissions$1.00Variable administrative expense$0.50 If the selling price is $23.50 per unit, the contribution margin per unit sold is closest to:

A. $12.35
B. $15.30
C. $9.65
D. $6.50


Answer: A

Business

You might also like to view...

Which of the following is consistent with McGregor's Theory Y management style?

a. Workers are concerned only about satisfying lower-level needs. b. Workers are motivated best by extrinsic incentives. c. Management exercises strong control with little emphasis on the individual. d. Management strives to balance control and individual freedom.

Business

Additive models are used when patterns of seasonal variations ______.

a. remain constant over time b. become more or less pronounced as the trend component increases or decreases c. keep fluctuating over time d. exhibits different types of trend patterns

Business

Regarding discontinued operations, which of the following statements is incorrect?

A) Gain and losses on the sale of plant assets are not reported as discontinued operations. B) A loss on discontinued operations is reported with an addition for the applicable income tax. C) Most analysts do not include the results of discontinued operations in financial analysis. D) The discontinued operations heading of the income statement includes segments of the business that have been sold.

Business

A business reality that makes effective project management critical is the fact that:

A) Products are becoming increasingly simple. B) Inflation is rampant. C) Product life cycles are compressing. D) Product launch windows are widening.

Business