Calculation of contribution margin per unit during july

Reference no: EM13824222

Problem

Kilihea Corporation produces a single product. The company's absorption costing income statement for July follows:

Kilihea Corporation Income Statement For the month ended July 31
Sales (14,500 units)	$710,500
Cost of goods sold	443,700
Gross margin	266,800
Selling and administrative expenses:
Fixed	130,500
Variable	72,500
Total selling and administrative expense	203,000
Net operating income	$ 63,800

The company's variable production costs are $22.60 per unit and its fixed manufacturing overhead totals $122,600 per month. The contribution margin per unit during July was

a. $27.60

b. $4.40

c. $21.40

d. $19.60

Additional Requirement-

The problem belongs to Basic Accounting problem and it discusses about calculation of contribution margin per unit.

Reference no: EM13824222

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