Home / Assignment Help / An industrial union: is most concerned with increasing the demand for workers in an industry restricts supply of labor through licensing requirements organizes a wide range of workers in an industry to gain bargaining power is most effective in a purely competitive industry

An industrial union: is most concerned with increasing the demand for workers in an industry restricts supply of labor through licensing requirements organizes a wide range of workers in an industry to gain bargaining power is most effective in a purely competitive industry

The Contribution Margin per unit (CM) can be calculated
from the difference of Selling Price per unit (SP) and Total Expenses per unit
(TE).

 

First, let’s calculate the value of SP:

SP = Sales / Units sold

SP = $1,043,400 / 22,200 units sold

SP = $47

 

Second, calculate all expenses:

Direct materials per unit = $234,948 / 27,970 units
manufactured = $8.4

Direct labor per unit = $131,459 / 27,970 units
manufactured = $4.7

Variable manufacturing overhead per unit = $240,542 / 27,970
units manufactured = $8.6

Variable selling expenses per unit = $113,220 / 22,200
units sold = $5.1

TE = $26.8

 

Therefore the CM is:

CM = SP – TE

CM = $47 – $26.8

CM = $20.2 per unit

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