In 2018, X Company expects to produce and sell 66,000 units of its only product for...

In 2018, X Company expects to produce and sell 66,000 units of its only product for $34.73. The following are budgeted variable costs per unit:

Direct Materials	$5.39
Direct Labor	$5.27
Variable Overhead	$4.31
Variable selling and administrative	$4.32
Total	$19.29

Budgeted fixed overhead for 2018 is $187,440, and budgeted fixed selling and administrative expenses are $190,740.

What is X Company's budgeted contribution margin rate for 2018?

Expert Solution

Answer--- 44% or using 2 decimal places 44.46%

Calculation

Working		Per Unit
A	Budgeted selling price	$ 34.73
B	Budgeted Variable cost	$ 19.29
C=A-B	Budgeted Contribution per Unit	$ 15.44
D=C/A x 100	Budgeted Contribution margin rate	44.46%

Budgeted Variable cost	Per Unit
Direct material	$ 5.39
Direct Labor	$ 5.27
Variable Manufacturing Overheads	$ 4.31
Variable Selling and Administrative Overheads	$ 4.32
	$ 19.29

ekkarill92 answered 3 years ago

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