Calculate the gross margin per unit

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Problem - Energy ++ is a company that produced food products for people active in sports. The following budgeted volume and costs has been provided for one of their post-workout beverages:

Budgeted production 65,000 units

Selling price $4 per unit

Direct material cost $1.25 per unit

Direct Labour cost $0.20 per unit

Fixed Manufacturing costs $19,500

Variable Manufacturing costs $0.25 per unit

Variable Administrative costs $0.01 per unit

Fixed Administrative costs $3,900

Required - Calculate the following amounts

a) Gross margin per unit under absorption costing.

b) Contribution margin per unit under variable costing.

c) Contribution margin per unit under throughput costing.

Reference no: EM132470583

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