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A company makes and sells one product.The price is$50 per unit .The cost
card is:
$
Direct material 22.00
Direct labour 5.50
Direct expenses 0.50
Overheads 15.00Total unit cost 43.00
60% of overheads are fixed,the remainder are variable overheads.During September,10 000 units were sold.
What was the contribution for September?
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It says that the total 60% of overhead cost is fixed so the that. fixed 60%=9 and variable is 40%=6 so the total cost per unit under marginal costing is (22+5.50+0.50+6=34 now we less the selling price per unit which is 43 so that 43-34=9 so now we can find contribution (9*10000=90000)
sir please tell me is i am right
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