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equired (show your workings for each question): A) Prepare a contribution margin income statement for the month.

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

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 46E: Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is...

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Question

Shoosta Ltd produces two different products with the following monthly data:

A1 A2 Total

Selling price per unit $100 $12

Variable cost per unit $ 70 $ 3

Expected unit sales 21,000 14,000 35,000

Sales mix 60 percent 40 percent 100 percent

Fixed costs $500,000

Assume the sales mix remains the same at all levels of sales.

Round to the nearest unit of product, hundredth of a per cent, and nearest cent where appropriate.

Required (show your workings for each question):

A) Prepare a contribution margin income statement for the month.

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