Question
Kent Company manufactures a product that sells for $53.00 and has variable costs of $28.00 per unit. Fixed costs are $260,000. Kent can buy a
Kent Company manufactures a product that sells for $53.00 and has variable costs of $28.00 per unit. Fixed costs are $260,000. Kent can buy a new production machine that will increase fixed costs by $13,60 ~ year, but will decrease variable costs by $3.80 per unit.
Compute the contribution margin per unit if the machine is purchased.
O $21.20.
O $25.00.
O $28.80.
O $30.30.
O $31.80.
Kent Company manufactures a product that sells for $53.00 and has variable costs of $28.00 per unit. Fixed costs are $260,000. Kent can buy a new production machine that will increase fixed costs by $13,60-year, but will decrease variable costs by $3.80 per unit. Compute the contribution margin per unit if the machine is purchased. $21.20 $25,00 $28,80 $30.30. $31.80
Kent Company manufactures a product that sells for $53.00 and has variable costs of $28.00 per unit. Fixed costs are $260,000. Kent can buy a new production machine that will increase fixed costs by $13,60 ~ year, but will decrease variable costs by $3.80 per unit.
Compute the contribution margin per unit if the machine is purchased.
O $21.20.
O $25.00.
O $28.80.
O $30.30.
O $31.80.
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Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
23rd Edition
978-0324662962
