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Delta Company manufactures household lamps, and sells them at $79 per unit. In the first month of operation, 2,350 units were produced and 1980 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs Variable marketing costs $4.87 per unit Fixed manufacturing costs $13.08 per unit Administrative expenses, all fixed $17.29 per unit Ending inventories: Direct materials -0- WIP $24.66 per unit -0- Finished goods ? units Calculate the contribution margin of the business in the first month of operation using the variable costing method.

Delta Company manufactures household lamps, and sells them at $79 per unit. In the first month of operation, 2,350 units were produced and 1980 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs Variable marketing costs $4.87 per unit Fixed manufacturing costs $13.08 per unit Administrative expenses, all fixed $17.29 per unit Ending inventories: Direct materials -0- WIP $24.66 per unit -0- Finished goods ? units Calculate the contribution margin of the business in the first month of operation using the variable costing method.

FINANCIAL ACCOUNTING
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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Delta Company manufactures household lamps, and sells them at $79 per unit. In the first month of operation, 2,350 units were produced and 1980 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs Variable marketing costs $4.87 per unit Fixed manufacturing costs $13.08 per unit Administrative expenses, all fixed $17.29 per unit Ending inventories: $24.66 per unit Direct materials -0- WIP Finished goods ? units Calculate the contribution margin of the business in the first month of operation using the variable costing method. -0-
Transcribed Image Text:Delta Company manufactures household lamps, and sells them at $79 per unit. In the first month of operation, 2,350 units were produced and 1980 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs Variable marketing costs $4.87 per unit Fixed manufacturing costs $13.08 per unit Administrative expenses, all fixed $17.29 per unit Ending inventories: $24.66 per unit Direct materials -0- WIP Finished goods ? units Calculate the contribution margin of the business in the first month of operation using the variable costing method. -0-
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