Carter, Inc. sold 4,200 units of its product at a price of $79.50 per unit. The total variable cost per unit is $55, consisting of $32.80 in variable production cost and $22.20 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing. a. $160,440 b. $94,960 c. $196,140 d. $333,900 e. ($139,180)

Principles of Accounting Volume 2
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ISBN:9781947172609
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Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 5EB: Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following...
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Carter, Inc. sold 4,200 units of its product at a price of
$79.50 per unit. The total variable cost per unit is $55,
consisting of $32.80 in variable production cost and
$22.20 in variable selling and administrative cost.
Compute the manufacturing margin for the company
under variable costing.
a. $160,440 b. $94,960 c. $196,140 d. $333,900 e. ($139,180)
Transcribed Image Text:Carter, Inc. sold 4,200 units of its product at a price of $79.50 per unit. The total variable cost per unit is $55, consisting of $32.80 in variable production cost and $22.20 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing. a. $160,440 b. $94,960 c. $196,140 d. $333,900 e. ($139,180)
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