Mckerchie Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as G62. Data concerning this product are given below: The above per unit data are based on annual production of 9,000 units of the component. Direct labor can be considered to be a variable cost.
-Refer to the original data in the problem.What is the current contribution margin per unit for component G62 based on its selling price of $160 and its annual production of 9,000 units?
A)$28
B)$134
C)$93
D)$132

Question

Mckerchie Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as G62. Data concerning this product are given below:  The above per unit data are based on annual production of 9,000 units of the component. Direct labor can be considered to be a variable cost.
-Refer to the original data in the problem.What is the current contribution margin per unit for component G62 based on its selling price of $160 and its annual production of 9,000 units?
A)$28 
B)$134 
C)$93 
D)$132

Quizplus · Accepted Answer

The Answer of Mckerchie Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as G62. Data concerning this product are given below:  The above per unit data are based on annual production of 9,000 units of the component. Direct labor can be considered to be a variable cost.
-Refer to the original data in the problem.What is the current contribution margin per unit for component G62 based on its selling price of $160 and its annual production of 9,000 units?
A)$28 
B)$134 
C)$93 
D)$132