Question

Alexis Co. reported the following information for May: Part A Units sold 5,000 units Selling price per unit $ 800 Variable manufacturing cost per unit 520 Sales commission per unit - Part A 80 What is the manufacturing margin for Part A?

Answer 1

Answer: $1,400,000

Step-by-step explanation:

Given the following ;

PART A :

Units sold = 5000

Selling price per unit = $800

Variable manufacturing cost per unit = $520

Commission per unit = $80

Manufacturing margin =?

Manufacturing margin for part A is the the difference between the total amount from sales and the total variable cost of goods

Therefore,

Manufacturing margin = (Unit sold × selling price per unit) - (unit sold × variable manufacturing cost per unit)

Manufacturing margin = (5000 × $800) - (5000 × 520)

Manufacturing margin = $4,000,000 - $2,600,000 = $1,400,000

Answer 2

Check the explanation

Step-by-step explanation:

This question is connected to the company's gross manufacturing margin and it can be calculated by taking away or subtracting the cost of goods sold from the overall amount of sales or revenue. The result will then be divided by the entire revenue or sales to arrive at the gross margin.

800-520=280

280/800=0.35=35%