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Paris Perfumes has provided the following data for the previous year: Units sold during the previous year 25,000 units Selling price per unit $75 Direct materials per unit $35 Direct manufacturing labor per unit $10 Variable manufacturing overhead per unit $5 Fixed manufacturing costs $250,000 Budgeted production at the beginning of the year 27,000 units Variable marketing cost per unit $3 Fixed marketing cost $30,000 Number of units in opening inventory 0 Number of units in ending inventory 2,000 units What was the throughput margin for the previous year for Paris Perfumes

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anthougo

The throughput margin for the previous year for Paris Perfumes is $550,000.

What is the throughput margin?

The throughput margin is the same as the contribution margin.

The throughput margin calculates the profits obtained across the production cycle, focusing on variable costs and sales revenue.

Data and Calculations:

Units sold = 25,000 units

Selling price per unit = $75

Direct materials per unit = $35

Direct labor per unit = $10

Variable manufacturing overhead = $5

Variable marketing cost per unit = $3

Total variable costs per unit = $53

Fixed manufacturing costs = $250,000

Fixed marketing cost = $30,000

Total fixed costs = $280,000

Budgeted production units = 27,000

Ending inventory = 2,000

Throughput margin per unit = $22 ($75 - $53)

Throughput margin for the previous year = $550,000 ($22 x 27,000 - 2,000)

Thus, the throughput margin for the previous year for Paris Perfumes is $550,000.

Learn more about throughput margin at https://brainly.com/question/22530597

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