Question
Mockingbird Bow and Arrow makes bows and arrows sets for use in the Hunger Games. It has the following sales and cost data per
Mockingbird Bow and Arrow makes bows and arrows sets for use in the Hunger Games. It has the following sales and cost data per unit at current production of 50,000 units: Unit Selling Price Unit Variable Cost Unit Fixed Cost $28.00 14.00 6.00 If Mockingbird was able to increase production by 25% without having to add extra capacity, a) [3 points] What amount of total variable and total fixed costs will the company recognize? b) [2 points] What amount of contribution margin will the company recognize? (YOU MAY REPORT YOUR ANSWERS CLEARLY HERE AND PROVIDE THE DETAILS ON THE SCRATCH PAPER)
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Cost Management Measuring, Monitoring And Motivating Performance
Authors: Leslie G. Eldenburg, Susan K. Wolcott, Liang Hsuan Chen, Gail Cook
3rd Canadian Edition
978-1-119-1856, 978-1119185697
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