Chance, Inc. sold 3,300 units of its product at a price of $87 per unit. Total variable cost per unit is $63, consisting of $41 in variable production cost and $22 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing. a) $135,300
b) $207,900
c) $151,800
d) $287,100
e) $128,700

Total manufacturing margin= $151,800

Explanation:

Giving the following information:

Units sold=  3,300

Unitary variable manufacturing cost= $41

Selling price per unit= $87

Because we need to calculate the manufacturing margin, we will not take into account the administrative costs:

Total manufacturing margin= 3,300*(87 - 41)

Total manufacturing margin= $151,800

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"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"