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Please do all of the parts. Gruden Company produces golf balls, which it normally sells for $7.00 each to retailers. The cost of manufacturing 20,000
Please do all of the parts.
Gruden Company produces golf balls, which it normally sells for $7.00 each to retailers. The cost of manufacturing 20,000 golf ball is: per unit Material Direct Labor Variable Overhead Fixed Overhead $10,000 $30,000 $20,000 $40,000 $100,000 $0.50 $1.50 $1.00 $3 Gruden Company also pays a sales commission of 5.35 per golf ball old FIXED COSTS ARE $40,000 Question 1: Determine the VARIABLE COST for the sales of 20,000 units Sales 20.000 unit @$7.00 Variable Material Manufacturing Direct Labor Variable Overhead Commission $0.00 b) Determine the CONTRIBUTED MARGIN $0.00 #DIV/0! Based on the information above (show work) c) Determine the Breakeven Sales units Gruden Company d) If Gruden decided to reduce selling price to $6.50 and all other cost remain the same, what would the new breakeven sales units be ??? e) At the reduce price of $6.50, how many units must Gruden sell to maintain the current anticipate profit of $33,000 after overhead beStep by Step Solution
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