Chilton, Inc. sold 11,900 units last year for $20 each. Variable costs per unit were $3.00 for direct materials, $2.60 for direct labor, and $2.60 for variable overhead. Fixed costs were $61,200 in manufacturing overhead and $41,800 in nonmanufacturing costs. a. What is the total contribution margin? (Round your intermediate calculations to 2 decimal places.)b. What is the unit contribution margin? (Round your answer to 2 decimal places.)c. What is the contribution margin ratio? (Round your intermediate calculations and final answer to 2 decimal places.)

a. Total contribution margin is $140,420.00

b. Unit contribution margin is $11.80

c. Contribution margin ratio is 0.59.

Explanation:

a. What is the total contribution margin? (Round your intermediate calculations to 2 decimal places.)

Sales revenue = 11,900 × $20 = $238,000

Total variable cost = (11,900 × $3) + (11,900 × $2.6) + (11,900 × $2.6) = $97,580

Total contribution margin = $238,000 - $97,580 = $140,420.00

b. What is the unit contribution margin?

Unit contribution margin = Total contribution margin ÷ Units sold = $140,420.00 ÷ 11,900 = $11.80

c. What is the contribution margin ratio? (Round your intermediate calculations and final answer to 2 decimal places.)

Contribution margin ratio = Unit contribution margin ÷ Unit selling price = $11.80/20.00 = 0.59.

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:

agriculture and oil. natural resources, industry.