Exhibit 22-13

-Refer to Exhibit 22-13. What dollar amounts go in blanks (I)and (J)?

Question

Exhibit 22-13
 
-Refer to Exhibit 22-13. What dollar amounts go in blanks (I)and (J)?

Quizplus · Accepted Answer

Blank (I) is asking for the amount of total variable cost per unit, which can be calculated by dividing the total variable cost by the number of units produced (10,000 units). 
Total variable cost = $250,000 + $100,000 + $75,000 = $425,000 
Total variable cost per unit = $425,000 / 10,000 units = $42.50 
Blank (J) is asking for the contribution margin per unit, which can be calculated by subtracting the variable cost per unit from the selling price per unit. 
Contribution margin per unit = Selling price per unit - Variable cost per unit 
Contribution margin per unit = $75 - $42.50 = $32.50

Exhibit 22-13 -Refer to Exhibit 22-13. What Dollar Amounts Go in Blanks