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Warriors Company describes the following for its merchandise for its first year of operations. Direct materials $25 per unit Direct labor $25 per unit Variable
Warriors Company describes the following for its merchandise for its first year of operations.
Direct materials | $25 per unit |
Direct labor | $25 per unit |
Variable overhead | $10 per unit |
Fixed overhead | $50,000 per year |
Variable selling and administrative expenses | $3 per unit |
Fixed selling and administrative expenses | $ 22,500 Per year |
Present all computations and formulas without computations and formulas you will receive 0 points for the exercise.
- Compute total product cost per unit using absorption costing for a production level of 2,500 units
- Compute contribution margin using variable costing assuming the company sells its product for $175 per unit and produces and sells 2,500 units.
- Compute contribution margin using variable costing assuming the company sells its product for $200 per unit and produces and sells 3,000 units.
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