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III. Cost and revenue analysis Exercise 13 (4 points) Trim AS shall set up a contribution calculation for an order. The company expects to direct
III. Cost and revenue analysis Exercise 13 (4 points) Trim AS shall set up a contribution calculation for an order. The company expects to direct material costs will be NOK 5,000. Direct wage costs in manufacturing departments 1 and 2 are expected to be NOK 10,000 and NOK 8,000, respectively. The company has divided its business into three cost centers; manufacturing department 1, manufacturing department 2 and the sales and administration department. The additional rate for indirect variable costs in manufacturing departments 1 and 2 are 25% and 20%, respectively. Activity goals are resp direct salary in manufacturing departments 1 and 2. The additional rate for indirect variable costs in sales and the administration department is 10%. Activity goals are total variable manufacturing costs. Corporate coverage requirement is 30% Calculate sales price incl. VAT for the order
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