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GLASGOWANASTASIA
09.12.2019 •
Business
Assuming no direct factory overhead costs (i.e., inventory carry costs) and $3 million dollars in combined promotion and sales budget, the dim product manager wishes to achieve a product contribution margin of 35%. given their product currently is priced at $35.00, what would they need to limit the material and labor costs to? a. $23.00b. $24.50c. $21.00d. $22.75
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Ответ:
d. $22.75
Explanation:
We know that
Contribution margin per unit = Selling price per unit - Variable expense per unit
where,
Selling price per unit is $35
And, the contribution margin is 35%
So, the Contribution margin per unit would be
= Selling price per unit × contribution margin
= $35 × 35%
= $12.25
Now after finding out the contribution margin per unit, the variable cost per unit would be
= $35 - $12.25
= $22.75
And, the direct material and labor cost is a variable cost
Ответ:
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Explanation:
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