During the Past Year, United Memories Sold 150,000 Units

Essay

During the past year, United Memories sold 150,000 units. Each of these units was sold at a price of $75. At the end of the year, the accounting department identified the costs per unit to be: $20 in materials, $15 for selling costs, and $8 for general expenses. Fixed costs for the year were $1,250,000. The president of United Memories wants to know what the contribution margin and net income were for the year.