Sohail Corporation produced 80,000 tires and sold them for $100 each during 2011. The company determined that
Question:
Sohail Corporation produced 80,000 tires and sold them for $100 each during 2011. The company determined that fixed manufacturing cost per unit was $25 per tire. The company reported gross profit of $1,440,000 on its 2011 financial statements.
Required
Determine the variable cost per unit, the total variable cost, and the total contribution margin.
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Sales revenue 100 x 80000 8000000 Gross profit 1440000 Co...View the full answer
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Related Book For 
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
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