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XY Company has two product lines, X and Y. X Y Total Volume 200 150 350 Revenue $50,000 $80,000 $130,000 Variable costs: Direct labor $20,000
XY Company has two product lines, X and Y. X Y Total Volume 200 150 350 Revenue $50,000 $80,000 $130,000 Variable costs: Direct labor $20,000 $30,000 $50,000 Direct materials $30,000 $20,000 $50,000 Contribution margin ? ? $30,000 Fixed costs ? ? $25,000 Profit margin ? ? $5,000 The company allocates fixed costs based on direct labor dollars. Compute the profit margin for product line X. O A. (10,000) B. 10,000 C. O D. (25,000)
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