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Use the information provided below to answer the following questions Guitar Total Cost Monopoly $450,000 S1,500,000 Thor Direct Materials Direct Labor Overhead S300,000 $20,000 $30,000
Use the information provided below to answer the following questions Guitar Total Cost Monopoly $450,000 S1,500,000 Thor Direct Materials Direct Labor Overhead S300,000 $20,000 $30,000 $60,000 Setup Machinin Inspection 100 setups 50 setups 75 setups $750,000 2,500 hours 1,500 hours 4,000 hours $150,000 45 inspections $360,000 50 20 inspections inspections Assembl 1.500 hours 1,000 hors 3.500 hours $90,000 12,000 15,000 3,000 Number of units produced Assume the following selling prices per unit: Guitar $200/unit, Monopoly $150/unit, Thor $700/unit Suppose the firm uses a single-stage cost allocation model with direct material cost as the cost allocation base. What is the product profitability per unit of Monopoly? Less than $150 Exactly $150 More than $150 Can't Tell
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