Question: Energy ++ is a company that produced food products for people active in sports. The following budgeted volume and costs has been provided for one of their post-workout beverages:
Budgeted production 65,000 units
Selling price $4 per unit
Direct material cost $1.25 per unit
Direct Labour cost $0.20 per unit
Fixed Manufacturing costs $19,500
Variable Manufacturing costs $0.25 per unit
Variable Administrative costs $0.01 per unit
Fixed Administrative costs $3,900
Required: Calculate the following amounts
1) Gross margin per unit under absorption costing.
2) Contribution margin per unit under variable costing.
3) Contribution margin per unit under throughput costing.
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