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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.

  1. Compute total product cost per unit using absorption costing for a production level of 2,500 units

  1. Compute contribution margin using variable costing assuming the company sells its product for $175 per unit and produces and sells 2,500 units.

  1. 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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