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Adamson, Inc. has the following cost data for Product X, and unit product cost using variable costing when production is 2.000 units, 2,500 units, and
Adamson, Inc. has the following cost data for Product X, and unit product cost using variable costing when production is 2.000 units, 2,500 units, and 5.000 units (Click on the icon to view the data.) (Click on the icon to view the unit product cost data.) Product X sells for $175 per unit. Assume no beginning inventories. Calculate the contribution margin using variable costing when Adamson: a. Produces and sells 2,000 units b. Produces 2,500 units and sells 2,000 units. c. Produces 5,000 units and sells 2,000 units. Begin by selecting the labels and computing the contribution margin for scenario a. and then compute the contribution margin for scenario b. and c Reference Data table Direct materials Direct labor Variable manufacturing overhead Total unit product cost 2,000 units $ 2,500 units 5,000 units Direct materials 41 5 41 S 41 Direct labor 57 57 57 7 7 Variable manufacturing overhead Fixed manufacturing overhead 105 5 105 $ 105 Print Done Print Done $41 per unit 57 per unit 7 per unit 20,000 per year Chack apNNAE G Begin by selecting the labels and computing the contribution margin for scenario a. and then compute the contributi Variable costing a. Cost of Goods Sold Direct Labor Direct Materials Fixed Manufacturing Overhead Net Sales Revenue Variable Manufacturing Overhead Total Variable Costs Begin by selecting the labels and computing the contribution margin for scenario a. and then compute the contribution margin for scenario b. and c Variable costing Contribution Margin
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