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Assume a manufacturing company provides the following information from its master budget for the month of May: Unit sales 7,800 Selling price per unit $

Assume a manufacturing company provides the following information from its master budget for the month of May:

Unit sales 7,800

Selling price per unit $ 38

Direct materials cost per unit $ 14

Direct labor cost per unit $ 10

Predetermined overheard rate (based on direct labor dollars) 80%

If the company maintains no beginning or ending inventories, what is the budgeted gross margin for May?

Choices:

$39,000

$46,800

$7,800

$36,800

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