Carver company produces a product which sells for $40. variable manufacturing costs are $18 per unit. fixed manufacturing costs are $5 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. a selling commission of 15% of the selling price is paid on each unit sold. the contribution margin per unit is :
a) $7
b) $17
c) $22
d) $16

c) $22

Explanation:

Contribution margin per unit is how much a unit produced by a certain company is able to contribute to the payment of the fixed selling and administrative costs, comissions for sells to employees are also part of selling and administrative costs, so the only things that we have to withdraw from the selling price would be the manufacturing cost, which would be the variable cost: 40-18=22, so the contribution margin per unit would be $22 dollars.

Main route:

Smelting --> Rolling --> Converting --> Sheared Sheet

Secondary route     -->

Smelting --> Rolling -->  rolled sheet

1) Smelting trasnferred materials into Rolling

2) It will be part of that department work in process inventory

"WIP SConverting debit then factorty overhead credit"

Later it will be transferred out as a complete process therefore,

Finished good Inventory - Shared sheet

3) the Smelting department transfer the entire of his output into Rolling department

4) the finished good will become cost of good solg once they are sold.

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Explanation:

We have to read he description of how the processing system works and check to whichdeparmtent are the goods being transferred or sold.