View the step-by-step solution to:


Macy Corporation's relevant range of activity is 6,300 units to 13,500 units. When it produces and sells 9,900

units, its average costs per unit are as follows:

Average Cost per Unit

Direct materials $ 5.20

Direct labor $ 3.65

Variable manufacturing overhead $ 1.65

Fixed manufacturing overhead $ 2.90

Fixed selling expense $ 0.95

Fixed administrative expense $ 0.65

Sales commissions $ 0.90

Variable administrative expense $ 0.55

If the selling price is $29.00 per unit, the contribution margin per unit sold is closest to:

a) $10.50 b) $6.70 c) $20.15 d) $17.05

Please explain the correct answer.

Top Answer

Hence, the... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question