Accurate metal company sold 34,000 units of it's product at a price of $290 per unit. total variable cost per unit is $171, consisting of $157 in variable production cost and $8 in variable selling and administrative cost. compute the manufacturing margin for the company under variable costing. a. $9,860,000b. $5,814,000c. $5,542,000d. $4,522,000

option (D) $4,522,000

Explanation:

Data provided in the question:

Number of units sold = 34,000

Price per unit = $290

Total variable cost per unit = $171

Variable production cost = $157

Variable selling and administrative cost = $8

Now,

Manufacturing margin per unit = Selling price - Variable production cost

= $290 - $157

= $133

Therefore,

Total manufacturing margin

= Manufacturing margin per unit × Number of units sold

= $133 × 34,000

= $4,522,000

Hence,

The answer is option (D) $4,522,000

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

(a) when insurance is obtained through a reciprocal insurer, the insureds are sharing the risk of loss with other subscribers of that reciprocal.

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