Perez Corporation produced 214,000 watches that it sold for $20 each during year 2. The company determined that fixed manufacturing cost per unit was $9
Perez Corporation produced 214,000 watches that it sold for $20 each during year 2. The company determined that fixed manufacturing cost per unit was $9 per watch. The company reported a $1,070,000 gross margin on its year 2 financial statements.
Required
Determine the variable cost per unit, the total variable cost, and the total contribution margin.
Perez Corporation produced 214,000 watches that it sold for $20 each during year 2. The company determined that fixed manufacturing cost per unit was $9 per watch. The company reported a $1,070,000 gross margin on its year 2 financial statements.
Required
Determine the variable cost per unit,
the total variable cost,
and the total contribution margin.
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Authors: Germain B. Boer, William L. Ferrara, Debra C. Jeter
4th Edition
0873939123, 978-0873939126
