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Question 2 Vietleader Co makes two products, X and Y. Information relating to each of these products for August 202X is as follows: X Y
Question 2 Vietleader Co makes two products, X and Y. Information relating to each of these products for August 202X is as follows: X Y Opening inventory Production (units) 16,000 10,000 Sales (units) 15,000 8.000 Sales price per unit $120 $200 Variable production costs per unit $60 $160 Variable selling cost per unit $10 $20 Fixed production costs per month $100,000 Sales and Administration costs per month $60,000 Fixed costs are allocated follow budgeted production and sale output in August 202X. Budgeted production and sale output is 25,000 units. Requirements: 2.1. Calculate the Contribution and Contribution per unit of each product. Give your advice to the manager about the proportion of volume should be sold? 2.2. Using marginal costing principles, calculate the profit in August 202X? Using absorption costing principles, calculate the profit in August 202X. Explain the reason for any difference in the reported profit under marginal costing system and absorption costing system
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