Question
Tany Corporation is a small table manufacturing company operating in the north of Puerto Rico. Managers estimate the following costs per unit (one table) Direct
| Tany Corporation is a small table manufacturing company operating in the north of Puerto Rico. | |
| Managers estimate the following costs per unit (one table) | |
| Direct material (DM) | $6.00 |
| Direct labor (DL) | $4.00 |
| Variable manufacturing overhead (VMO) | $3.00 |
| Variable administrative expenses (VAE) | $1.00 |
| The estimated contribution margin is | 30% |
| Monthly fixed costs are | |
| Manufacturing | $10,000.00 |
| Administrative | $5,000.00 |
The monthly break-even point in dollars is
| a. | $40,000 | |
| b. | $50,000 | |
| c. | $60,000 | |
| d. | $65,000 |
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Activity Based Cost Management In Government
Authors: Gary Cokins
2nd Edition
1567261817, 978-1567261813
