Question
NorthernStarsellsseveralproducts.Informationofaveragerevenueandcostsisasfollows Sellingpriceperunit $20.00 Variablecostsperunit: Directmaterial $4.00 Directmanufacturinglabor $1.60 Manufacturingoverhead $0.40 Sellingcosts $2.00 Annualfixedcosts $96,000 Thecompanysells12,000unitsattheendoftheyear. 1.Thecontributionmarginperunitis 2.Ifdirectlaboranddirectmaterialcostsincreaseby$1each,contributionmargin
NorthernStarsellsseveralproducts.Informationofaveragerevenueandcostsisasfollows
Sellingpriceperunit $20.00
Variablecostsperunit:
Directmaterial $4.00
Directmanufacturinglabor $1.60
Manufacturingoverhead $0.40
Sellingcosts $2.00
Annualfixedcosts $96,000
Thecompanysells12,000unitsattheendoftheyear.
1.Thecontributionmarginperunitis
2.Ifdirectlaboranddirectmaterialcostsincreaseby$1each,contributionmargin
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Managerial Accounting
Authors: Susan V. Crosson, Belverd E. Needles
11th Edition
0538742801, 978-0538742801
