Gardner Manufacturing Company produces a product that sells for $120. A selling commission of 10% of the selling price is paid on each unit sold. Variable manufacturing costs are $60 per unit. Fixed manufacturing costs are $20 per unit based on the current level of activity, and fixed selling and administrative costs are $16 per unit. The contribution margin per unit is:

  1. 👍
  2. 👎
  3. 👁
  1. Contribution margin=unit selling price-unit variable costs.

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. statistics

    A manufacturing company produces 10,000 plastic glasses per week. This company supplies plastic glasses to another company, which packages the glasses as part of picnic sets. The second company randomly samples 10 glasses from the

  2. Managerial Economic

    The ABC Company manufactures AM/FM clock radios and sells on average 3,000 units monthly at 25$ each to retail stores.Its closest competitor produces a similar type of radio that sells for 28$. a. If the demand for ABC's product

  3. calculus

    A manufacturing company sells high quality jackets through a chain of specialty shops. the demand equation for this jackets is p = 400 − 50q where p is the selling price ( in dollars per jacket) and q is the demand ( in

  4. math

    Which shows the following numbers ordered from greatest to least? 0.5, 5/8, 65% , 3/5 a. 3/5 , 5/8 , 0.5, 65% b. 0.5 , 3/5 , 5/8, 65% c. 65%, 3/5 , 0.5 , 5/8 d. 65%, 5/8, 3/5, 0.5 Mrs. Henderson sells houses. She gets a 5%

  1. Mathematics

    XYZ Company plans to market a new product.Based on its market studies,the company estimates that it can sell 5500 units in 2004.The selling price will be birr 2 per unit.Variable costs are estimated to be 40% of the selling

  2. cost accounting

    The East Company manufactures several different products. Unit costs associated with Product ORD203 are as follows: Direct materials $50 Direct manufacturing labor 8 Variable manufacturing overhead 10 Fixed manufacturing overhead

  3. Algebra

    1.Mary is selling her craft to earn money she sells her bracelets for $6 and her necklaces for $10 her goal is to make at least $120 in sales which of the following represents three possible solutions to the problem A.6x+10y=120

  4. math

    Four products are processed sequentially on three machines. The following table gives the pertinent data of the problem. Manufacturing time (hr) per unit Machine Cost per hr ($) Product 1 Product 2 Product 3 Product4 Capacity (hr)

  1. economics

    Kimberly works for a well known financial company as a sales representative. She earns a small base salary but receives commission off every product she sells. Kimberly has basic living expenses in addition to a student loan. She

  2. analazye profit functions

    For a certain company, the cost function for producing x items is C(x)=40x+150 and the revenue function for selling x items is R(x)=−0.5(x−80)2+3,200. The maximum capacity of the company is 100 items. The profit function P(x)

  3. CVP Analysis - Business Math

    Engineering estimates show that the variable cost of manufacturing a new product will be $35 per unit. Based on market research, the selling price of the product is to be $120 per unit and variable selling expense is expected to

  4. ACC

    someone help me with this questions please 1. How would the following costs be classified (product or period) under variable costing at a retail clothing store? Cost of purchasing clothing Sales commissions A) Product Product B)

You can view more similar questions or ask a new question.