Pedregon Corporation has provided the following information: Cost per Period Cost per Unit $ 6.55 $ 3.50 $ 1.35 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $ 21,000 $ 0.55 $ 0.60 Sales commissions Variable administrative expense Fixed selling and administrative expense $ 6,300 If the selling price is $20.50 per unit, the contribution margin per unit sold is closest to:

Principles of Accounting Volume 2
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Author:OpenStax
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Chapter6: Activity-based, Variable, And Absorption Costing
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Problem 14EB: Crafts 4 All has these costs associated with production of 12,000 units of accessory products:...
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Pedregon Corporation has provided the following information:
Cost per
Cost per Unit
$ 6.55
$ 3.50
$ 1.35
Period
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
$ 21,000
$ 0.55
$ 0.60
Sales commissions
Variable administrative expense
Fixed selling and administrative expense
$ 6,300
If the selling price is $20.50 per unit, the contribution margin per unit sold is closest to:
Multiple Choice
Transcribed Image Text:Pedregon Corporation has provided the following information: Cost per Cost per Unit $ 6.55 $ 3.50 $ 1.35 Period Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $ 21,000 $ 0.55 $ 0.60 Sales commissions Variable administrative expense Fixed selling and administrative expense $ 6,300 If the selling price is $20.50 per unit, the contribution margin per unit sold is closest to: Multiple Choice
$7.95
$10.45
$5.70
$3.85
Transcribed Image Text:$7.95 $10.45 $5.70 $3.85
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