Company XYZ is currently producing AND selling 10,000 units of product A. At this level, the total product cost was $60,000. This included $10,000 direct materials, $20,000 direct labor and $30,000 manufacturing overhead cost, which included 20% variable manufacturing overhead cost. The selling and administrative expenses were $100,000, which included $60,000 fixed selling and administrative costs. Assume that the selling price per unit $20, how much was the total ?contribution margin

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
1::00
مراجعة
) العودة
Incorrect
سؤال 7
Mark 0.00 out of 2.00
Company XYZ is currently producing AND
selling 10,000 units of product A. At this level,
the total product cost was $60,000. This
included $10,000 direct materials, $20,000
direct labor and $30,000 manufacturing
overhead cost, which included 20% variable
manufacturing overhead cost. The selling and
administrative expenses were $100,000, which
$60,000 fixed selling and
administrative costs. Assume that the selling
price per unit $20, how much was the total
?contribution margin
inc
.a
$194,000
.b
$124,000
.C
$86,000
.d
$104,000
.e
None of the given answers
The correct answer is: $124,000
II
Transcribed Image Text:1::00 مراجعة ) العودة Incorrect سؤال 7 Mark 0.00 out of 2.00 Company XYZ is currently producing AND selling 10,000 units of product A. At this level, the total product cost was $60,000. This included $10,000 direct materials, $20,000 direct labor and $30,000 manufacturing overhead cost, which included 20% variable manufacturing overhead cost. The selling and administrative expenses were $100,000, which $60,000 fixed selling and administrative costs. Assume that the selling price per unit $20, how much was the total ?contribution margin inc .a $194,000 .b $124,000 .C $86,000 .d $104,000 .e None of the given answers The correct answer is: $124,000 II
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education