Kogler Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: AverageCost per UnitDirect materials$4.55?Direct labor$4.10?Variable manufacturing overhead$1.35?Fixed manufacturing overhead$7.00?Fixed selling expense$3.15?Fixed administrative expense$1.60?Sales commissions$0.40?Variable administrative expense$0.35? If the selling price is $21.00 per unit, the contribution margin per unit sold is closest to:
A. $4.00
B. $10.25
C. ($1.50)
D. $12.35
Answer: B
You might also like to view...
Taking a physical inventory is not necessary under a perpetual inventory system
Indicate whether the statement is true or false
Explain the additional functions served by the collection of taxes other than the generation of revenue
What will be an ideal response?
Compared to corporations, what is the primary disadvantage of partnerships as forms of business organizations??
A. ?The tax rates applied to partnerships are higher than the tax rates applied to corporations. B. ?Any dividends paid to the owners of a partnership business are taxed twice, once at the partnership level and once at the personal, or individual level. C. ?Partnerships generally are more complex to form (start up) than corporations. D. ?Partnerships have unlimited lives whereas corporations do not. E. ?The owners of a partnership, that is, the partners, have unlimited liability when it comes to business obligations whereas the owners of a corporation have limited liability.
Fact Pattern 41-1BShrimp Boat Company decides to consolidate its operations with Trawlers, Inc., to form Coastal Fishers Corporation (CFC).Refer to Fact Pattern 41-1B. Trawlers owed money to View Harbor Storage and other creditors. After the consolidation, CFC must pay
A. all of Trawlers' debts. B. half of Trawlers' debts. C. none of Trawlers' debts. D. only debts that Trawlers incurred after consolidation was proposed.