Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Product A Product B Total sales volume (units) 360 200 560 Revenue $8,000 $48,000 $56,000 Variable costs: direct materials $1,600 $3,200 $4,800 direct labor

image text in transcribedimage text in transcribed

Product A Product B Total sales volume (units) 360 200 560 Revenue $8,000 $48,000 $56,000 Variable costs: direct materials $1,600 $3,200 $4,800 direct labor $3,200 $8,000 $11,200 Contribution margin $3,200 $36,800 $40,000 Fixed costs Profit $33,600 $6,400 a) Allocate the fixed costs between products A and B. Use direct labor dollars as the cost driver. allocation rate=$ allocated costs for A=$ allocated costs for B=$ per DL$ b) Compute the profit margins for products A and B: profit margin for A=$ profit margin for B=$ Enter negative numbers with a minus sign, i.e., a loss of $1,000 should be entered as -1000, not as (1000) or ($1000).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Human Resource Management

Authors: John Bernardin

6th Edition

978-0078029165, 0078029163

More Books

Students also viewed these Accounting questions

Question

Write each fraction as a percent. 7 50

Answered: 1 week ago