QS 19-10 Computing contribution margin LO P2 D’Souza Company sold 6,000 units of its product at a price of $88.00 per unit. Total variable cost is $51.60 per unit, consisting of $40.80 in variable production cost and $10.80 in variable selling and administrative cost. Compute the contribution margin for this company.

$218,400

Explanation:

The computation of contribution margin is here below:-

                                               Units       Cost per unit         Total

Sales                                     6,000        $88                       $528,000

Less:

Variable production cost     6,000        $40.8                  $244,800

Variable selling and

administrative costs        6,000         $10.8                   $64,800

Contribution margin                                                           $218,400

Therefore the we multiplied the sale unit with cost per unit, in the similar way we multiplied the Variable production cost unit with cost per unit and Variable selling and administrative costs with cost per unit to reach the contribution margin.

The population of the town will be 86,000 in 2015.

Explanation: Between 1950 and 2010 (60 years) , the population rose by 36,000. To find out how much the pop. rose each year, we divide 36,000 by 60 (the amount of years) and get 600. Between 2010 and 2015 there are 5 years. 5x600 = 3,000. 3,000 + 83,000 (population in 2010) is 86,000.