A packaging company produces a variety of cardboard boxes in an automated process.Expected production per month is 160,000 units.The required direct materials costs $0.30 per unit.Variable manufacturing overhead costs are $24,000 per month and are allocated based on units of production.Direct labour is budgeted to be $6,400.The company only produces based on customer orders, so all production is considered sold as it is produced.Revenue for the month will be $240,000.What is the budgeted contribution margin per unit?
A)$1.50 per unit
B)$1.31 per unit
C)$1.16 per unit
D)$1.05 per unit
E)$1.01 per unit

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The Answer of A packaging company produces a variety of cardboard boxes in an automated process.Expected production per month is 160,000 units.The required direct materials costs $0.30 per unit.Variable manufacturing overhead costs are $24,000 per month and are allocated based on units of production.Direct labour is budgeted to be $6,400.The company only produces based on customer orders, so all production is considered sold as it is produced.Revenue for the month will be $240,000.What is the budgeted contribution margin per unit?
A)$1.50 per unit
B)$1.31 per unit
C)$1.16 per unit
D)$1.05 per unit
E)$1.01 per unit

A Packaging Company Produces a Variety of Cardboard Boxes in an Automated