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Exercise 3-4A (Algo) Determining variable cost from incomplete cost data LO 3-1 Benson Corporation produced 217,000 watches t

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Answer #1
Variable cost per unit = $                5.00 ($ 1085000 / 217000)
Total Variable Cost = $ 10,85,000.00
Total Contribution = $ 34,72,000.00 ($ 4557000 - $ 1085000)
Workings:
Particulars Amount
Sales $ 45,57,000.00 (217000 x $ 21)
Less: Gross Margin $ 15,19,000.00
Total Manufacturing Cost $ 30,38,000.00
Less: Fixed Manufacturing Cost $ 19,53,000.00 (217000 x $ 9)
Variable Cost $ 10,85,000.00

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