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Evergreen Corp. has provided the following data: Sales per period 4,600 units Selling price $ 215 per unit Variable manufacturing cost $ 48 per unit
Evergreen Corp. has provided the following data: |
Sales per period | 4,600 units |
Selling price | $ 215 per unit |
Variable manufacturing cost | $ 48 per unit |
Selling expenses | $ 6,900 plus 5% of selling price |
Administrative expenses | $ 4,800 plus 20% of selling price |
The contribution margin ratio is (Do not round intermediate calculations.): |
52.7% | |
77.7% | |
47.3% | |
67.3% |
2.
Pedulla Inc, which produces and sells a single product, has provided its contribution format income statement for February. |
Sales (3,000 units) | $273,000 |
Variable expenses | 131,400 |
Contribution margin | 141,600 |
Fixed expenses | 83,900 |
Net operating income | 57,700 |
If the company sells 3,300 units, its net operating income should be closest to: |
$57,700 | |
$63,470 | |
$71,860 | |
$66,000 |
3. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling price | $210 |
Units in beginning inventory | 0 |
Units produced | 2,400 |
Units sold | 2,100 |
Units in ending inventory | 300 |
Variable costs per unit: | |
Direct materials | $51.00 |
Direct labor | $25.00 |
Variable manufacturing overhead | $17.00 |
Variable selling and administrative | $19.00 |
Fixed costs: | |
Fixed manufacturing overhead | $76,800 |
Fixed selling and administrative | $50,400 |
The total gross margin for the month under absorption costing is: |
$127,200 | |
$205,800 | |
$178,500 | |
$35,700 |
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