Question
Rain until September co makes a product, the splash,which has a variable production cost of 6$ per unit and a sales price of 19$ per
Rain until September co makes a product, the splash,which has a variable production cost of 6$ per unit and a sales price of 19$ per unit. At the beginning of September 20X0, there were no opening inventories and production during the month was 20,000 units. Fixed costs for the month were 45000$(production,administration,sales and distribution). There were no variable marketing costs.
Required
Calculate the contribution and profit for September 20X0, using marginal costing principles, if sakes were as follows.
a) 10000 splashes
b) 15000 splashes
c) 20000splashesRain until September co makes a product, the splash,which has a variable production cost of 6$ per unit and a sales price of 19$ per unit. At the beginning of September 20X0, there were no opening inventories and production during the month was 20,000 units. Fixed costs for the month were 45000$(production,administration,sales and distribution). There were no variable marketing costs.
Required
Calculate the contribution and profit for September 20X0, using marginal costing principles, if sakes were as follows.
a) 10000 splashes
b) 15000 splashes
c) 20000splashes
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