During its first year. Concord, Inc., showed a $21 per unit profit under absorption costing but would have reported a total profit of $16,800 less under variable costing. If production exceeded sales by 700 units and an average contribution margin of 60% was maintained, what is apparent: a. Fixed cost per unit? b. Sales price per unit? c. Variable cost per unit? d. Unit sales volume if total profit under absorption costing was $189,000?

During its first year. Concord, Inc., showed a $21 per unit profit under absorption costing but would have reported a total profit of $16,800 less under variable costing. If production exceeded sales by 700 units and an average contribution margin of 60% was maintained, what is apparent: a. Fixed cost per unit? b. Sales price per unit? c. Variable cost per unit? d. Unit sales volume if total profit under absorption costing was $189,000?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

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