Alexis Co. reported the following information for May: Part A Units sold 5,000 units Selling price per unit $ 800 Variable manufacturing cost per unit 520 Sales commission per unit - Part A 80 What is the manufacturing margin for Part A?

$1,400,000

Explanation:

Given the following ;

PART A :

Units sold = 5000

Selling price per unit = $800

Variable manufacturing cost per unit = $520

Commission per unit = $80

Manufacturing margin =?

Manufacturing margin for part A is the the difference between the total amount from sales and the total variable cost of goods

Therefore,

Manufacturing margin = (Unit sold × selling price per unit) - (unit sold × variable manufacturing cost per unit)

Manufacturing margin = (5000 × $800) - (5000 × 520)

Manufacturing margin = $4,000,000 - $2,600,000 = $1,400,000

b. a single paragraph.

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