Chance, Inc. sold 3,900 units of its product at a price of $117 per unit. The total variable cost per unit is $87, consisting of $59 in variable production costs and $28 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing. a. $230,100 b. $339,300 c. $226,200 d. $456,300 e. ($222,300)

Chance, Inc. sold 3,900 units of its product at a price of $117 per unit. The total variable cost per unit is $87, consisting of $59 in variable production costs and $28 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing. a. $230,100 b. $339,300 c. $226,200 d. $456,300 e. ($222,300)

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 11MCQ: Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett...

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Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett allocates common fixed cost to Product 1 and Product 2 on the basis of sales. If Product 2 is dropped, which of the following is true? a. Sales will increase by 300,000. b. Overall operating income will increase by 2,600. c. Overall operating income will decrease by 25,000. d. Overall operating income will not change. e. Common fixed cost will decrease by 27,600.
Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200
Grainger Company produces only one product and sells that product for $100 per unit. Cost information for the product is: Selling expenses are $4 per unit and are all variable. Administrative expenses of $20,000 are all fixed. Grainger produced 5,000 units; sold 4,000; and had no beginning inventory. A. Compute net income under absorption costing variable costing B. Reconcile the difference between the income under absorption and variable costing.
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Nani Lighting Inc.
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