A company produced 500 units of a product and incurred the following costs. Direct materials, P8,000; direct labor, P10,000; overhead (20% fixed), P45,000. Is the sales value of 500 units is P102,000, what is the contribution margin rate? a. 44% c. 53% b. 47% d. 74%

A company produced 500 units of a product and incurred the following costs. Direct materials, P8,000; direct labor, P10,000; overhead (20% fixed), P45,000. Is the sales value of 500 units is P102,000, what is the contribution margin rate? a. 44% c. 53% b. 47% d. 74%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...

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A company produced 500 units of a product and incurred the following costs.
Direct materials, P8,000; direct labor, P10,000; overhead (20% fixed), P45,000. Is
the sales value of 500 units is P102,000, what is the contribution margin rate?
a. 44%
c. 53%
b. 47%
d. 74%

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