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QUESTION:

ANSWERS SHEET:

Baxtell Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing Direct materials 45 Direct labour 13 Variable manufacturing overhead Variable selling and administrative 6 Fixed costs per year: $375,000 Fixed manufacturing overhead Fixed selling and administrative expense $238,500 During the year, the company produced 31,250 units and sold 26,500 units. The selling price of the company's product is $94 per unit