Kosco Corporation produces a single product. The company's absorption costing income statement for March follows: Sales (2,400 units) Cost of goods sold Gross margin Selling and administrative expenses: $48,000 24,000 24,000 Fixed Variable Net operating income $7,200 9,600 16,800 $7,200 During March, the company's variable production costs were $8 per unit and its fixed manufacturing overhead totaled $5,000. The contribution margin per unit during March was: a. $12 per unit b. $3 per unit c. $10 per unit d. $8 per unit
Kosco Corporation produces a single product. The company's absorption costing income statement for March follows: Sales (2,400 units) Cost of goods sold Gross margin Selling and administrative expenses: $48,000 24,000 24,000 Fixed Variable Net operating income $7,200 9,600 16,800 $7,200 During March, the company's variable production costs were $8 per unit and its fixed manufacturing overhead totaled $5,000. The contribution margin per unit during March was: a. $12 per unit b. $3 per unit c. $10 per unit d. $8 per unit
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 25E: Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual...
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