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The following costs have been estimated based on sales of 27,000 units: Total Annual Costs Percent That Is Variable Direct materials $ 270,000 100 %
The following costs have been estimated based on sales of 27,000 units:
Total Annual Costs | Percent That Is Variable | ||||
Direct materials | $ | 270,000 | 100 | % | |
Direct labor | 190,000 | 100 | |||
Manufacturing overhead | 190,000 | 60 | |||
Selling and administrative | 110,000 | 30 | |||
What selling price will yield a contribution margin of 50%?
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