Question
1. Furfrou Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume:
1. Furfrou Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume:
| Sales volume (units) | 8,500 units | 11,400 units |
| Cost of sales | 534,000 | 638,400 |
| Selling and administrative costs | 337,500 | 410,000 |
The company sells the product for 134.00 per unit.
The best estimate of the TOTAL CONTRIBUTION MARGIN when 10,070 units are sold is _________________ .
2. Gumshoo Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume:
| Sales volume (units) | 5,000 | 6,000 |
| Cost of sales | 756,000 | 882,200 |
| Selling and administrative costs | 190,000 | 215,000 |
The company sells the product for 193.40 per unit.
The best estimate of the TOTAL VARIABLE COSTS when 5,300 units are sold is _________________ .
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Accounting Principles Volume 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
8th Canadian Edition
1119502551, 1-119-50255-5, 978-1119502555
