Question
QUESTION 7 The Heartlake Corporation manufactures and sells toy gyroscopes. The following data is related to sales and production of the toy gyroscopes for last
QUESTION 7
The Heartlake Corporation manufactures and sells toy gyroscopes. The following data is related to sales and production of the toy gyroscopes for last year.
Selling price per unit | $8.20 |
Variable manufacturing costs per unit | $1.84 |
Variable selling and administrative expenses per unit | $4.45 |
Fixed manufacturing overhead (in total) | $79,000 |
Fixed selling and administrative expenses (in total) | $83,000 |
Units produced during the year | 520,000 |
Units sold during year | 190,000 |
Using variable costing, what is the contribution margin for last year?
$349,600 | ||||||||||||||
$2,753,100 | ||||||||||||||
$1,558,000 | ||||||||||||||
$362,900
QUESTION 8 How is operating income affected if the number of units sold exceeds the number of units produced?
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