Question
Beta Company sells several products. Information of average revenue and costs is as follows: Selling price per unit $23 Variable costs per unit: Direct material
Beta Company sells several products. Information of average revenue and costs is as follows:
Selling price per unit $23
Variable costs per unit:
Direct material $5
Direct manufacturing labour $1.96
Manufacturing overhead $0.55
Selling costs $4
Annual fixed costs $91278
The company sells 10365 units during the period. If the direct labour and direct material per unit cost increases by $1 each, the total contribution margin for the period will decrease by $________.
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The Correct answer is Decrease by 24000 Explanation We first find out the Contribution margin before ...Get Instant Access to Expert-Tailored Solutions
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Cost Accounting A Managerial Emphasis
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
6th Canadian edition
978-0132893534, 9780133389401, 132893533, 133389405, 978-0133392883
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