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Ramort 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
Ramort 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 units Would the income be different if using variable costing instead of absorption costing? 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 41,600 20,800 Under variable costing, can a company increase its net income by increasing production
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