Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit Per Year Selling price $ 200 Direct materials $ 69 Direct labor $ 50 Variable manufacturing overhead $ 12 Sales commission $ 8 Fixed manufacturing overhead $ 300,000 Using variable costing, what is the company's contribution margin? Multiple Choice • $549,000 • $423,000 • $351,000 • $621,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assume the following information for a company that produced 10,000 units and sold
9,000 units during its first year of operations:
Per Unit Per Year
Selling price $ 200
Direct materials $ 69
Direct labor $ 50
Variable manufacturing overhead $ 12
Sales commission $ 8
Fixed manufacturing overhead $ 300,000
Using variable costing, what is the company's contribution margin?
Multiple Choice
• $549,000
• $423,000
• $351,000
• $621,000
Transcribed Image Text:Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit Per Year Selling price $ 200 Direct materials $ 69 Direct labor $ 50 Variable manufacturing overhead $ 12 Sales commission $ 8 Fixed manufacturing overhead $ 300,000 Using variable costing, what is the company's contribution margin? Multiple Choice • $549,000 • $423,000 • $351,000 • $621,000
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