Question

Accurate Metal Company sold 32,000 units of its product at a price of $250 per unit. Total variable cost per unit is $150, consisting of $145 in variable production cost and $5 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.

Answer 1

$3,360,000

Step-by-step explanation:

Data provided

Product price per unit = $250

variable production cost = $145

Sold units = 32,000

The computation of the manufacturing margin is given below:-

= (Product price per unit - variable production cost) × Sold units

= ($250 - $145) × 32,000 units

= $3,360,000

Therefore for computing the manufacturing margin we simply applied the above formula.