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The company has only one product that sells for $20 per unit. Harrison estimates total fixed costs to be $8,900. Harrison estimates direct cost of
The company has only one product that sells for $20 per unit. Harrison estimates total fixed costs to be $8,900. Harrison estimates direct cost of $2.40 per unit, direct labor costs of $3.00 per unit and variable overhead costs of $0.60 per unit. The CEO would like to see what the gross margin and operating income will be if 1000 units are sold in the next period. Prepare a contribution income statement.
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