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1. Determining fixed and variable cost per unit
Vidal Corporation produced and sold 24,000 units of product during October. It earned a contribution margin of $96,000 on sales of $336,000 and determined that cost per unit of product was $12.50.
Required
Based on this information, determine the variable and fixed cost per unit of product.
2. Determining variable cost from incomplete cost data
Eubank Corporation produced 140,000 watches that it sold for $27 each during 2008. The company determined that fixed manufacturing cost per unit was $6 per watch. The company reported a $420,000 gross margin on its 2008 financial statements.
Determine the total variable cost, the variable cost per unit, and the total contribution margin.
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