The following represents the activity for last year: a. What is the contribution margin? b. What is
Question:
The following represents the activity for last year:
a. What is the contribution margin?
b. What is the gross margin?
c. Why is contribution margin different than gross margin? Is contribution margin more useful for product costing or for relevant costing special decisions? Explain.
d. What is net income?
Transcribed Image Text:
Unit production and sales Unit sales price Unit variable production costs Unit variable selling costs Fixed overhead production costs Fixed selling and administrative costs 7,000 $17.00 $6.00 $1.00 $21,000 $14,000
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a 70000 Contribution margin Sales Variable costs 17 6 1 7000 units 70000 Contribution margin b 56000 ...View the full answer
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Related Book For
Managerial Accounting
ISBN: 9780137689453
1st Edition
Authors: Jennifer Cainas, Celina J. Jozsi, Kelly Richmond Pope
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