Marginal costing

C) $4,690

Selling Price = $50
DM per unit = $16.3 ($16,300/1,000 units)
DL per unit = $9.8 ($9,800/1,000 units)
therefore,
CM per unit = $23.9

For 1,100 units,
CM = $23.9 x 1,100 = $26,290
Profit = CM-FOH = $26,290-$21,600 = $4,690

@williams2
I’m not sure why are you asking the full questions from BPP Kit when you already have the answers in there.
We are not here to just provide you answers to whatever question you ask. Its the same as if you’re asking us to do your homework.
Next time, please read the question carefully, try to understand the answer given in the Kit, and ask whatever is in the ANSWER that you don’t understand.

For this question, here’s the workings:
Total Sales = 40,000
Cash Sales = 40,000*10% = 4,000
Credit Sales = 36,000
Out of these 36,000 Receivables, 40% are received in the first month and 50% in the second month. There’s a settlement discount of 4% for the receivables paid in first month.

First month = 36000*40%*96%(less 4%) = 13,824
2nd month = 36000*50% = 18,000

Total Cash Receipts:
Cash Sales = 4,000
1st month receivables = 13,824
2nd month receivables = 18,000
Total = 35,824
Therefore, the answer is A.