Eley corporation produces a single product. the cost of producing and selling a single unit of this product at the company's normal activity level of 40,000 units per month is as follows: direct materials $ 43.8direct labor $ 10.4variable manufacturing overhead $ 1.9fixed manufacturing overhead $ 26.0variable selling & administrative expense $ 2.4fixed selling & administrative expense $ 13.8the normal selling price of the product is $104.4 per unit. an order has been received from an overseas customer for 1,650 units to be delivered this month at a special discounted price. this order would not change the total amount of the company's fixed costs. the variable selling and administrative expense would be $1.8 less per unit on this order than on normal sales. direct labor is a variable cost in this company. what is the contribution margin per unit on normal sales?

Contribution margin per unit = $45.90

Contribution margin as sales percentage = 43.97%

Explanation:

As for the information provided we have,

Normal Sales = Normal sales per month, before the overseas order.

For such normal sales, the cost and sales data has been provided,

Selling price per unit = $104.40

Variable costs = Direct material + Direct Labor + Variable Manufacturing + Variable selling & Administrative

= $43.80 + $10.40 + $1.90 + $2.40 = $58.50

Contribution margin per unit = Selling price - Variable cost per unit = $104.40 - $58.50 = $45.90

Contribution margin as sales percentage = 43.97%

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

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