Question
Larry Eagle Company provided the following information regarding its only product--skateboards. Direct materials used $200,000 Direct labor 80,000 Fixed overhead 100,000 Fixed selling and administrative
Larry Eagle Company provided the following information regarding its only product--skateboards.
Direct materials used $200,000
Direct labor 80,000
Fixed overhead 100,000
Fixed selling and administrative costs 190,000
Variable overhead 20,000
Variable selling and administrative 90,000
Selling unit price 70
Units produced and sold 10,000
_____ is the gross margin (gross profit) if the absorption approach is used.
| A. | $470,000 | |
| B. | $450,000 | |
| C. | $390,000 | |
| D. | $300,000 |
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Fia Foundations Of Financial Accounting Ffa Interactive Text
Authors: BPP Learning Media
1st Edition
1509724176, 978-1509724178
