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Ramont Company reports the following cost data for its single product. The company regularly sells 20,800 units of its product at a price of $66
Ramont Company reports the following cost data for its single product. The company regularly sells 20,800 units of its product at a price of $66 per unit. If Ramort doubles its production to 41,600 units while sales remain at the current 20,800-unit level, by how much would the company's contribution margin increase or decrease under variable costing? Direct materials Direct labor Overhead costs for the year Variable overhead Fixed overhead per year Selling and administrative costs for the year Variable Fixed Normal production level (in units) $ 12 per unit $ 14 per unit $ 5 per unit $41,600 $ 6 per unit $65,600 20,800 unito Would the income be different if using variable costing instead of absorption costing? RAMORT COMPANY Variable Costing Income Statement (Partial) Production volume (units) 20,800 Sales volume (units) 20,800 $ 1,372,090 $ 41,600 20,800 1,372,800 Sales $ Direct materials Direct labor Variable overhead Selling and administrative 249,600 $ 291,2001 104,000 124,800 520.000 499.200 582.400 208,000 644,800 1,289,600 1,934,400 Total variable costs Contribution margin
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