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The company Bing & Bong has 4 products in their range, A, B, C and D. Sales volume (units), price and direct costs per
The company "Bing & Bong" has 4 products in their range, A, B, C and D. Sales volume (units), price and direct costs per piece (NOK/piece) in the last year for the four products are given in the table: k A B C D 10000 10000 9000 9000 1600 1700 1200 1400 1500 1800 1200 1500 Produkt Salesprice (kr/units) Directe material (kr/unit) Direct salary (kr/stykk) Other direct manufacturing costs (kr/units) Salesprovision (kr/units) Additional rates based on last year's indirect costs . Indirect fixed costs material dept. (MOF) : 20% . Indirect fixed costs production dept. (TOF): 156% Indirect variable costs production dept. (TOV): 25% . Indirect fixed selling and administrative costs (S&AOF): 35% 200 100 100 200 1000 1000 900 900 Which product is the most profitable to sell, i.e. makes the maximum contribution to the profit per piece?
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To determine which product is the most profitable to sell STEP 1 The variable costs per unit for each product are as follows Product A Direct material ...Get Instant Access to Expert-Tailored Solutions
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