A project has a projected sales price of $99 a unit, variable costs per unit of...

A project has a projected sales price of $99 a unit, variable costs per unit of $58, annual fixed costs of $238,000, and annual depreciation of $139,000. The tax rate is 22 percent. What is the contribution margin for an analysis using sales units of 12,800? Multiple Choice $27.06 $38.97 $22.41 $41.00 $42.64

Expert Solution

Answer

Total Contribution margin = sales revenue - variable cost

Sales per unit =$ 99

Unit sold = 12800

Variable cost per unit=$58

Sale revenue = 99*12800

=1267200

Total variable cost = 58*12800

=742400

Total Contribution margin = 1267200-742400

=524800

Contribution margin per unit = contribution margin /units sold

=524800/12800

=$41

jeff jeffy answered 2 years ago

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