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1. Zara Builders Inc. produces two products, A and B. The following information is presented for both products: Selling price per unit $33 $23 Variable

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1. Zara Builders Inc. produces two products, A and B. The following information is presented for both products: Selling price per unit $33 $23 Variable cost per unit 21 11 Total fixed costs are $240,000. a. Calculate the contribution margin for each product(5 marks) I a. Calculate break-even point in units of both A and B if the sales mix is 3 units of A for every unit of B (10 marks) Shoe Express, Inc., manufactures two types of shoes, B-Ball and Marathon. The B-Ball shoe has a complex design that uses gel-filled compartments to provide support. The Marathon shoe is simpler to manufacture and uses conventional foam padding. Following is the data provided about these two products: B-Ball shoe Marathon shoe Direct Materials per unit $14 Direct Labour per unit $5.00 Direct labour hours per 0.80 unit $34 $17.00 2.0 BI Annual production 20,000 10,000 The company has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labour cost. The firm's estimated total manufacturing overhead for the year is $453,960

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