Delos, Inc. reports the following information for​ April: Sigma Gamma Units sold 2 comma 000 units 800 units Sales price per

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

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  1. 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.

  2. 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

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