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Acker, Inc. has the following cost data for Product X, and unit product cost using variable costing when production is 250 units, 500 units, and
Acker, Inc. has the following cost data for Product X, and unit product cost using variable costing when production is 250 units, 500 units, and 2,500 units. (Click on the icon to view the data.) (Click on the icon to view the unit product cost data) LES Begin by selecting the labels and computing the contribution margin for scenario a. and then compute the contribution margin b. c. Data Tab Variable costing Net Sales Revenue Total Variable Costs 40750 26750 14000 Direct mat Contribution Margin Direct labo Variable m Fixed mane Reference Direct materials Direct labor Variable manufacturing overhead Total unit product cost 250 units 500 units 2,500 units $ 37 $ 37 $ 37 65 55 55 15 15 15 $ 107 $ 107 $ 107 Print Done when production is 250 Product X sells for $163 per unit. Assume no beginning inventories. Calculate the contribution margin using variable costing when Acker: a. Produces and sells 250 units. b. Produces 500 units and sells 250 units. c. Produces 2,500 units and sells 250 units. mpute the contribution margin for scenario b, and c. Data Table Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $37 per unit 55 per unit 15 per unit 5,000 per year - X Print Done anits 37 55 15 107
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