Apollo Corporation produces and sells a single product, sewing machines. Selected cost and operating data relating to the product for last year are given below: Apollo Corporation Selling price per unit $180 Units produced during the year 2,000 Units sold during the year 1,800 Variable costs per units: Direct materials, direct labor, and variable manufacturing overhead $45 Variable selling and administrative expenses $20 Fixed costs per year: Fixed manufacturing overhead $100,000 Fixed selling and administrative expenses $70,000 1. Assume the company uses absorption costing. What was the company’s unit product cost last year? a)95 b)75 c)65 d)45
Apollo Corporation produces and sells a single product, sewing machines. Selected cost and operating data relating to the product for last year are given below:
|
Apollo Corporation |
|
|
Selling price per unit |
$180 |
|
Units produced during the year |
2,000 |
|
Units sold during the year |
1,800 |
|
Variable costs per units: |
|
|
Direct materials, direct labor, and variable manufacturing |
$45 |
|
Variable selling and administrative expenses |
$20 |
|
Fixed costs per year: |
|
|
Fixed manufacturing overhead |
$100,000 |
|
Fixed selling and administrative expenses |
$70,000 |
1. Assume the company uses absorption costing. What was the company’s unit product cost last year?
a)95
b)75
c)65
d)45
2. Assume the company uses absorption costing. What was the company’s gross margin last year?
3. Assume the company uses absorption costing. How much fixed
4. Assume the company uses variable costing. What was the company’s total contribution margin last year?
5. Assume the company uses variable costing. What was the company’s net operating income last year?
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