Question
Assume that a manufacturer's variable cost per unit for a product is $10; the manufacturer sells the product to distributors for $20. The distributors sell
Assume that a manufacturer's variable cost per unit for a product is $10; the manufacturer sells the product to distributors for $20. The distributors sell the product to end-users for $25. What are the unit margin and percentage margin for the distributors?
| a. | $10 per unit margin with a 20% per unit percentage margin | |
| b. | $5 per unit margin with a 50% per unit percentage margin | |
| c. | $10 per unit margin with a 50% per unit percentage margin | |
| d. | $5 per unit margin with a 20% per unit percentage margin | |
| e. | $15 per unit margin with a 60% per unit percentage margin |
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
5th edition
978-1259728877, 1259728870, 978-1259565403
