Question
Total estimated Annual fixed cost are $387,500 and annual sales of 10,000 units are expected. Per units cost are as fallows. Direct Material5.00 Direct Labor6.00
Total estimated Annual fixed cost are $387,500 and annual sales of 10,000 units are expected. Per units cost are as fallows.
Direct Material5.00
Direct Labor6.00
Manufacturing overhead
Variable7.00
Fixed8.00
Selling Cost
Commissions1.00
Shipping1.50
Fixed1.00
$29.50
1. How much is the unit contribution margine?
2. The companies Cost formula for annual total cost would be?
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Managerial Accounting
Authors: James Jiambalvo
3rd Edition
0470038152, 978-0470038154
