Lillibridge & Friends, Incorporated provides you with the following data for its single product:
Sales price per unit
Fixed costs (per quarter):
Selling, general, and administrative (SG&A)
Manufacturing overhead
Variable costs (per unit):
Direct labor
Direct materials
Manufacturing overhead
SG&A
Number of units produced per quarter
Required:
$ 230
1,500,000
4,500,000
26
29
27
23
500,000 units
Compute the amounts for each of the following assuming that the production levels are within the relevant range if the number of
units is 500,000 per quarter. Also calculate if the number of units increases to 600,000 per quarter.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
500,000 units 600,000 units
a. Prime cost per unit
b. Contribution margin per unit
c. Gross margin per unit
d Conversion cost ner unit