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Case 2 Green and Grow Corporation produces commercial fertilizer spreaders. The following information is available for Green and Grow's anticipated annual volume of 400,000 units.
Case 2 Green and Grow Corporation produces commercial fertilizer spreaders. The following information is available for Green and Grow's anticipated annual volume of 400,000 units. Per Unit Total Selling price per unit $300 Direct materials $32 Direct labor 54 Variable manufacturing overhead 72 Fixed manufacturing overhead $12,000,000 Variable selling and administrative expenses 34 Fixed selling and administrative expenses 7,200,000 Instructions Compute each of the following: 1. Total cost per unit using variable costing 2. Total cost per unit using full costing 3. Contribution margin 4. Break event point in unit and dollar
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