DC and Marvelwould like to evaluate one of the product lines that they sell to defense department.Every month the Company produce an identical number of units, although the sales in units differ frommonth to month.Selling priceUnits in beginning inventoryUnits producedUnits soldVariable costs per unit:Direct materialsDirect labourVariable manufacturingoverheadVariable selling andadministrativeA$1114008,8008,900$34$37$3$9Fixed costs:Fixed manufacturing overhead$61,600Fixed selling and administrative $169,100Required:B1093606900720029312753,500145,0001. Compute the total Contribution Margin.2. Compute the Operating Income under Variable Costing.3. Prepare reconciliation from your Variable Costing Operating Income to compute Operating Incomeunder absorption costing.

The objective of the question is to calculate the total Contribution Margin, Operating Income under…

Answered: DC and Marvelwould like to evaluate one…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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