Question

In: Accounting

The records of the Dodge Corporation show the following results for the most recent year: Sales...

The records of the Dodge Corporation show the following results for the most recent year:

Sales (16,200 units) $ 307,800
Variable expenses 162,000
Net operating income 64,800


Given these data, the unit contribution margin was:

$4

$5

$19

$9

Solutions

Expert Solution

Solution

Unit Contribution Margin = Selling price per unit  - Variable Cost per unit

Selling price per unit = Sales / Number of units

= $ 307,800/ 16,200

= $ 19

Variable cost per unit = Variable cost / Number of units

= $ 162,000 / 16,200

= $ 10

Unit contribution margin = $ 19 - $ 10 = $ 9


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