Calculate the contribution margin per unit

Assignment Help Operation Management

Reference no: EM131031743

Martinez Company’s relevant range of production is 9,000 units to 15,000 units. In the most recent period Martinez produced and sold 13,000 units, its revenues and costs were as follows:

Sales Rev 22.00 per unit 286,000 total

Fixed Admin Exp 2.20 per unit 28.600 total

DM 5.50 per unit 71,500 total

DL 4.20 per unit 54,600 total

Sales commission 1.00 per unit 13,000 total

Variable Admin Exp 0.50 per unit 6,500 total

Variable MOH 2.50 per unit 32,500 total

Fixed MOH 2.00 per unit 26,000 total

Fixed Selling Exp 1.50 per unit 19,500 total

If during the coming period Martinez produces 10,000 units and sells 9,000 units calculate the following:

Required: Calculate the following:

(a) The contribution margin per unit.

(b) The total manufacturing cost.

(d) The total cost of ending inventory on a variable cost balance sheet.

(e) The operating income using absorption costing.

(f) The operating income using variable costing.

Reference no: EM131031743

Questions Cloud

Explain relationship between price and variables : Price and the other variables. That is, Price (or transformations of it) is to be the response variable, and all other variables are potential explanatory variables - explain the relationship between Price and the other variables. That is, Price i..

Briefly describe the enterprise in terms of its operations : HI5019 STRATEGIC INFORMATION SYSTEMS FOR BUSINESS AND ENTERPRISE. Briefly describe the enterprise, in terms of its operations, products/services, markets, competitors etc

Analyze the three internal governance mechanisms : Analyze the three internal governance mechanisms (ownership concentration, boards of directors, and executive compensation) and recommend a possible fourth mechanism that would help align the interests of managerial agents with those of the firm’s ow..

Write a review on each of the given post : Write a review on each of the following post. The review of each post should be a minimum of 100 words. If you can do each one in a separate word document.

Calculate the contribution margin per unit : Martinez Company’s relevant range of production is 9,000 units to 15,000 units. In the most recent period Martinez produced and sold 13,000 units, its revenues and costs were as follows: Calculate the The contribution margin per unit. The total manuf..

Find the optimal plan by formulating as a linear program : Assume that a normal workday is 8 hours. Hiring cost are $350 per worker and firing cost (including severance pay) are $850 per worker. Holding costs are $4.00 per aggregate unit held per month. Assume that it requires an average of 1 hour and 40 min..

Why an appropriate customer segmentation is essential : With reference to the Business Model Canvas and real world business of your choice please examine one good and one bad example of a value proposition of a product (or service) and discuss in your examples why an appropriate customer segmentation i..

Determine the constant for p required to cause the 0.5kg : The slider starts from rest at position 1 and the unstretched length of the spring of modulus k = 250 N/m is 200mm. Neglect friction.

What do you learn about the company hp inc : What do you learn about the company? What areas are changing and may be opportunities for cost control and improved profits?

User Account

All Pages