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Ramort Company reports the following for its single product. Ramort produced and sold 20,400 units this year. Direct materials Direct labor Variable overhead Fixed
Ramort Company reports the following for its single product. Ramort produced and sold 20,400 units this year. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Sales price $ 12 per unit $ 14 per unit $5 per unit $ 40,800 per year $ 4 per unit $ 65,600 per year $ 66 per unit Ramort doubles its production from 20,400 to 40,800 units while sales remain at the current 20,400 unit level. (a) Compute contribution margin when production is 40,800 units under variable costing. (b) What is the change in contribution margin by increasing production from 20,400 units to 40,800 units under variable costing? Complete this question by entering your answers in the tabs below. Required A Required B Compute contribution margin when production is 40,800 units under variable costing. Variable expenses RAMORT COMPANY Contribution Margin (Variable Costing) Contribution margin
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