Delos, Inc. reports the following information for April: Sigma Gamma Units sold 2 comma 000 units 800 units Sales price per unit $ 350 $ 800 Variable manufacturing cost per unit 175 460 Sales commission per unit: Sigma: 4% of sales price 14 Gamma: 6% of sales price 48 What is the contribution margin of Sigma? A. $ 262 comma 000 B. $ 350 comma 000 C. $ 672 comma 000 D. $ 322 comma 000
D. $ 322,000
Explanation:
Delos, Inc.
Contribution margin format income statement
For sigma
Sales revenue (2,000 units × $350) = $700,000
Less: variable manufacturing cost = (2,000 units × $175) = ($350,000)
Less: sales commission = (700,000 × 4%) = ($28,000)
Contribution margin for sigma = $700,000 - $350,000 - $28,000
Contribution margin = $322,000
Therefore, option D is correct.
24 years, i believe is the correct answer.
lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o