Question

A cement manufacturer has supplied the following data:     Tons of cement produced and sold 255,000...

A cement manufacturer has supplied the following data:

   

Tons of cement produced and sold 255,000

Sales revenue$1,045,500

Variable manufacturing expense$438,000

Fixed manufacturing expense$235,000

Variable selling and administrative expense$72,000

Fixed selling and administrative expense$225,000

Net operating income$75,500

What is the company's unit contribution margin? (Round your intermediate calculations to 2 decimal places.)

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Answer #1
Sales revenue $1,045,500
Less : Variable manufacturing expense $438,000
Variable selling and administrative expense $72,000
Contribution margin $535,500

Unit contribution margin = Contribution margin / Tons of cement produced and sold

= $535,500 / 255,000

= $2.1

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