Carver Company produces a product which sells for R30. Variable manufacturing costs are R15 per unit. Fixed manufacturing costs are R5 per unit based on the current level of activity, and fixed selling and administrative costs are R4 per unit. A selling commission of 10% of the selling price is paid on each unit sold.   The contribution margin per unit is:   A. R8.00   B. R15.00   C. R3.00   D. R12.00

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
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Carver Company produces a product which sells for R30.

Variable manufacturing costs are R15 per unit.

Fixed manufacturing costs are R5 per unit based on the current level of activity, and fixed selling and administrative costs are R4 per unit.

A selling commission of 10% of the selling price is paid on each unit sold.

 

The contribution margin per unit is:

  A.

R8.00

  B.

R15.00

  C.

R3.00

  D.

R12.00

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