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SM6-8 (similar to) Question Help Ashton, Inc. has the following cost data for Product X, and unit product cost using variable costing when production is
SM6-8 (similar to) Question Help Ashton, Inc. has the following cost data for Product X, and unit product cost using variable costing when production is 1,000 units, 2,500 units, and 5,000 units. (Click on the icon to view the data.) (Click on the icon to view the unit product cost data.) Product X sells for $175 per unit. Assume no beginning inventories. Calculate the contribution margin using variable costing when Ashton a. Produces and sells 1,000 units b. Produces 2,500 units and sells 1,000 units. c. Produces 5,000 units and sells 1,000 units. Begin by selecting the labels and computing the contribution margin for scenario a. and then compute the contribution margin for scenario b. and c. a. Variable costing Net Sales Revenue Data Table Reference Variable Manufacturing Overhead Contribution Margin Direct materials 1,000 units 2,500 units 5,000 units Direct labor $45 per unit 54 per unit 10 per unit Direct materials S 45 $ 45 $ 45 Direct labor 54 54 54 Variable manufacturi overhead Fixed manufacturing overhead 25,000 per year 10 10 10 Variable manufacturing overhead $ 109 $ 109 $ 109 Total unit product cost Print Done Print Done Choose from any list or enter any number in the input fields and then click Check
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