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A business manufactures a single product that it sells for $10 per unit. The materials cost for each unit of product sold is $3.
A business manufactures a single product that it sells for $10 per unit. The materials cost for each unit of product sold is $3. Total operating expenses (i.e., total factory cost) are $50,000 each month. Labor hours are limited to 20,000 hours each month. Each unit of product takes 2 hours to assemble. What is the throughput accounting ratio (TPAR) for this business?
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To calculate the Throughput Accounting Ratio TPAR we need to determine the throughput contribution p...
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
17th Edition
1260247783, 978-1260247787
