Company XYZ is a merchandising business. The company is specialized in selling a specific brand of smartphones. The purchase cost per unit was OMR270. At the beginning of the month of May the company has inventory of 1,220 smartphones. During the month of May, the company purchased additional 1,000 smartphones. By the end of May, the company had 480 smartphones remaining in the store. The selling and general expenses for the company include wages and commissions, which include fixed monthly payment of OMR1,200 plus a OMR5 per unit sold; and depreciation of OMR2,000 per month. Assuming a selling price per unit of OMR540, calculate the total contribution margin. Select one: O a. None of the given answers O b. OMR323,300 OC OMR457,900 O d. OMR469,800 O e. OMR461,100
Company XYZ is a merchandising business. The company is specialized in selling a specific brand of smartphones. The purchase cost per unit was OMR270. At the beginning of the month of May the company has inventory of 1,220 smartphones. During the month of May, the company purchased additional 1,000 smartphones. By the end of May, the company had 480 smartphones remaining in the store. The selling and general expenses for the company include wages and commissions, which include fixed monthly payment of OMR1,200 plus a OMR5 per unit sold; and depreciation of OMR2,000 per month. Assuming a selling price per unit of OMR540, calculate the total contribution margin. Select one: O a. None of the given answers O b. OMR323,300 OC OMR457,900 O d. OMR469,800 O e. OMR461,100
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 18E: Lakeesha Barnett owns and operates a package mailing store in a college town. Her store, Send It...
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Transcribed Image Text:Company XYZ is a merchandising business. The company is specialized in selling a specific
brand of smartphones. The purchase cost per unit was OMR270. At the beginning of the
month of May the company has inventory of 1,220 smartphones. During the month of May,
the company purchased additional 1,000 smartphones. By the end of May, the company had
480 smartphones remaining in the store. The selling and general expenses for the company
include wages and commissions, which include fixed monthly payment of OMR1,200 plus a
OMR5 per unit sold; and depreciation of OMR2,000 per month. Assuming a selling price per
unit of OMR540, calculate the total contribution margin.
Select one:
O a. None of the given answers
O b. OMR323,300
OC OMR457,900
O d. OMR469,800
O e. OMR461,100
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