The following information relates to Clyde Corporation,which produced and sold 50,000 units last month.
$\begin{array}{|l|l|}
\hline \text { Sales } & \$ 850,000 \
\hline \text { Manufacturing costs: } & \
\hline \text { Fixed } & 210,000 \
\hline \text { Variable } & 140,000 \\hline \text { Selling and admin. Expenses: } & \
\hline \text { Fixed } & 300,000 \
\hline \text { Variable } & 45,000\
\hline
\end{array}$
There were no beginning or ending inventories.Production and sales next month are expected to be 40,000 units.In the next month,what should the company's unit contribution margin be?

Question

Quizplus · Accepted Answer

The unit contribution margin is calculated as (Sales - Variable Costs) / Units Sold. For Clyde Corporation, it is ($850,000 - $140,000 - $45,000) / 50,000 units = $13.30.

The Following Information Relates to Clyde Corporation,which Produced and Sold