Please given correct option Everwood Manufacturing started operations this year and incurredthe following costs:Direct Materials: $20,000Direct Labor: $25,000Manufacturing Overhead: $15,000Total Sales Revenue: $90,000What is the gross margin for the first year?a) $30,000b) $35,000c) $40,000d) $45,000

Step 1: Definition of Gross MarginGross Margin represents the difference between a company's revenue…

Answered: Everwood Manufacturing started…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 4CMA: Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and...

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Everwood Manufacturing started operations this year and incurred the following costs: Direct Materials: $20,000 Direct Labor: $25,000 Manufacturing Overhead: $15,000 Total Sales Revenue: $90,000 What is the gross margin for the first year? a) $30,000 b) $35,000 c) $40,000 d) $45,000