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Barnes Company reports the following for its product for its first year of operations. Direct materials $ 35 per unit Direct labor $ 25 per
Barnes Company reports the following for its product for its first year of operations.
Direct materials | $ 35 | per unit |
---|---|---|
Direct labor | $ 25 | per unit |
Variable overhead | $ 10 | per unit |
Fixed overhead | $ 48,000 | per year |
Variable selling and administrative expenses | $ 3 | per unit |
Fixed selling and administrative expenses | $ 20,000 | per year |
The company sells its product for $150 per unit. Compute contribution margin using variable costing assuming the company (a) produces and sells 2,000 units and (b) produces 2,400 units and sells 2,000 units.
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