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Cobee, Inc. manufactures chainsaws that sell for $60. Each chainsaw uses $10 in direct materials and $3 in direct labor per unit. Cobee has two
Cobee, Inc. manufactures chainsaws that sell for $60. Each chainsaw uses $10 in direct materials and $3 in direct labor per unit. Cobee has two activities: Machining, which is applied at the rate of $2 per machine hour, and Finishing, which is applied at the rate of $20 per batch. This month, Cobee made 200 chainsaws, using 1,000 machine hours in 40 batches. What is the gross profit for one chainsaw? a. $13 b. $27 c. $33 d. $47
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