How much contribution margin did the company earn

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Q1. Sweet Miranda Gourmet Cupcakes produces high quality pastries at $50.00 per box of 12 cupcakes. Costs for each dozen are as follows:

Direct Materials $10.00

Direct Labour $8.00

Variable Overhead $12.00

Fixed selling and administration expenses per month are $50,000.

Assume monthly sales volume is 10,000 boxes.

For each case sold, what is the contribution margin? What is the net profit per unit?

Q2. If a contribution margin income statement showed a net operating income of $4000 and fixed expenses of $10,000. How much contribution margin did the company earn?

a. $29,000

b. $15,000

c. $19,000

d. $14,000

Reference no: EM132747673

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