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Trudy's company builds jewelry boxes for box stores. In its first year of operations, the company incurred the following costs. Selling price $25.00 Variable costs
Trudy's company builds jewelry boxes for box stores. In its first year of operations, the company incurred the following costs. Selling price $25.00 Variable costs per unit Direct materials $6.50 Direct labour $2.75 $5.75 $3.90 Variable manufacturing overhead Variable selling and administration Fixed costs for year Fixed manufacturing overhead $28,500 Fixed selling and admin expenses $24,010 a) Assuming the company uses variable costing, calculate Trudy's manufacturing cost per unit for the current year. $ b) If the company produced 10,000 units and sold 7,500 units, what is their net income using a contribution margin income statement? $ c) What is absorption net income for the year? $
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