Question
Techo INC. manufactures Electronic Devices. The following information is provided per unit based on 10,000 units. Selling Price: $150 Direct materials: $20 Direct labor: 18
Techo INC. manufactures Electronic Devices. The following information is provided per unit based on 10,000 units.
Selling Price: $150
Direct materials: $20
Direct labor: 18
Variable manufacturing overhead: 12
Fixed manufacturing overhead: 30
Fixed selling and administrative: 10
Total costs: $90
In the following year, Electronic Device sales are expected to be 10,000 units. All of the costs will remain the same except for fixed manufacturing overhead, which will be increased by 20%, and material, which will be increased by 10%. The selling price per unit for next year will be $160. What is the contribution margin from Electronic Devices for the following year?
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