Exhibit 22-13

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

Question

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

Quizplus · Accepted Answer

To find P, we need to subtract the cost of goods sold from the net sales, which is $350 - $156.67 = $193.33. Dividing this by the number of units sold, we get $193.33/2 = $96.67 as the selling price per unit. 
To find Q, we need to subtract the total fixed cost and variable cost of goods sold from the total revenue, which is $350 - ($30 + $237.50) = $82.50. Dividing this by the number of units sold, we get $82.50/2 = $41.25 as the contribution margin per unit. 
Therefore, the dollar amounts that go in blanks (P) and (Q) are $96.67 and $41.25, respectively. Answer choice D is the correct choice.

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