Follett Company expects to produce and sell 1,000 units next month.Data on costs follows:
$\begin{array}{ll}
\text { Per unit costs: } & \
\text { Selling price } & \$ 10 \
\text { Variable manufacturing costs } & \$ 1.50 \
\text { Variable selling costs } & \$ 0.50 \
\text { Total costs: } & \
\text { Fixed manufacturing costs } & \$ 3,000 \
\text { Fixed selling costs } & \$ 150
\end{array}$ A. What is the variable cost per unit?
B. What is contribution margin per unit?
C. What is the variable cost ratio?
D. What is the contribution margin ratio?

Question

Follett Company expects to produce and sell 1,000 units next month.Data on costs follows:
 $\begin{array}{ll}
\text { Per unit costs: } & \
\text { Selling price } & \$ 10 \
\text { Variable manufacturing costs } & \$ 1.50 \
\text { Variable selling costs } & \$ 0.50 \
\text { Total costs: } & \
\text { Fixed manufacturing costs } & \$ 3,000 \
\text { Fixed selling costs } & \$ 150
\end{array}$ A. What is the variable cost per unit?
B. What is contribution margin per unit?
C. What is the variable cost ratio?
D. What is the contribution margin ratio?

Quizplus · Accepted Answer

The Answer of Follett Company expects to produce and sell 1,000 units next month.Data on costs follows:
 $\begin{array}{ll}
\text { Per unit costs: } & \
\text { Selling price } & \$ 10 \
\text { Variable manufacturing costs } & \$ 1.50 \
\text { Variable selling costs } & \$ 0.50 \
\text { Total costs: } & \
\text { Fixed manufacturing costs } & \$ 3,000 \
\text { Fixed selling costs } & \$ 150
\end{array}$ A. What is the variable cost per unit?
B. What is contribution margin per unit?
C. What is the variable cost ratio?
D. What is the contribution margin ratio?

Follett Company Expects to Produce and Sell 1,000 Units Next