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Multiple Choice, Question 29 The following information is available for the Rollin' Baby Company which produces two types of strollers, standard and deluxe Deluxe Total
Multiple Choice, Question 29 The following information is available for the Rollin' Baby Company which produces two types of strollers, standard and deluxe Deluxe Total 3,500 $147,000 Standard Sales volume (units) 4,000 7,500 $243,000 Revenue $96,000 Variable Costs 12,000 16,000 20,000 $48,000 Direct materials 17,500 29,500 24,000 40,000 28,500 48,500 $77,000 Direct labor Marketing & Sales Contribution Margin $125,000 Fixed Costs $24,000 $18,000 $16,000 Manufacturing Marketing & Sales Administration $67,000 Profit Before Tax If the company allocates their fixed costs based on direct labor dollars, the profit before tax for the standard and deluxe product line, respectively, would be c $24,800/$42,200 c $16,000/$51,000 $8,000/$59,000 c $19,000/$48,000
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