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Bill Johnson, sales manager, and Diane Buswell, controller, at Current Designs are beginning to analyze the cost considerations for one of the composite models of
Bill Johnson, sales manager, and Diane Buswell, controller, at Current Designs are beginning to analyze the cost considerations for one of the composite models of the kayak division. They have provided the following production and operational costs necessary to produce one composite kayak. Kevlar Resin and supplies Finishing kit (seat, rudder, ropes, etc.) Direct Labor Selling and administrative expenses-variable Selling and administrative expenses-fixed Manufacturing overhead-fixed Bill and Diane have asked you to provide a cost-volume-profit analysis, to help them finalize the budget projections for the upcoming year. Bill has informed you that the selling price of the composite kayak will be $2,200. (a) Calculate unit variable costs. Unit variable costs $230 per kayak $110 per kayak $180 per kayak $400 per kayak $460 per kayak $185,100 per year $270,000 per year $ per unit
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