Question

The Heartlake Corporation manufactures and sells toy gyroscopes. The following data is related to sales and production of the toy gyroscopes for last year. Selling price per unit ​$8.20 Variable manufacturing costs per unit ​$1.84 Variable selling and administrative expenses per unit ​$4.45 Fixed manufacturing overhead​ (in total) ​$79,000 Fixed selling and administrative expenses​ (in total) ​$83,000 Units produced during the year ​520,000 Units sold during year ​190,000

Answer 1

The Question is Incomplete; Full Question is as follows;

Using variable​ costing, what is the contribution margin for last​ year?

Contribution Margin = $362,900

Step-by-step explanation:

Computation of expenditure margin by differential costing;

Sales Minus variable cost

• Sales (190,000 *$8.20)

= $1,558,000

• Variable cost of Manufacturing(190,000 units *$1.84)

= $349,600

— variable sales and administrative costs(190,000 units *$4.45)

= $845,500

= contribution margin = $362,900

Keep in mind that; Set or Fixed expenses and overhead costs are not taken into account when trying to calculate the contribution margin.