the intracompany sales cover of the fixed cost. Sales revenue per unit: $400 Variable Cost per unit: $28.7 Intracompany sales: ($400*205) $82,000 Variable cost: ($28.7*205) ($5883.5) Contribution Margin $76116.5 Total fixed cost is $212,939 So the rest of the fixed cost is covered by commercial sales, which is 212,939-76116.5=136,822.5 Then, contribution Margin per unit for commercial sales is, Commercial sales per hour-variable cost per…
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