Kava Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as K65. Data concerning this product are given below: The above per unit data are based on annual production of 4,000 units of the component. Direct labor can be considered to be a variable cost.
-Refer to the original data in the problem. What is the current contribution margin per unit for component K65 based on its selling price of $180 and its annual production of 4,000 units?

Question

Kava Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as K65. Data concerning this product are given below:  The above per unit data are based on annual production of 4,000 units of the component. Direct labor can be considered to be a variable cost.
-Refer to the original data in the problem. What is the current contribution margin per unit for component K65 based on its selling price of $180 and its annual production of 4,000 units?

Quizplus · Accepted Answer

The Answer of Kava Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as K65. Data concerning this product are given below:  The above per unit data are based on annual production of 4,000 units of the component. Direct labor can be considered to be a variable cost.
-Refer to the original data in the problem. What is the current contribution margin per unit for component K65 based on its selling price of $180 and its annual production of 4,000 units?

Kava Inc Manufactures Industrial Components