The contribution margin that the company would disclose on an absorption-costing income statement is: NUBD, which began business at the start of the current year, had the following data:Planned and actual production: 40,000 unitsSales: 37,000 units a P15 per unitProduction costs:Variable: P4 per unitFixed: P260,000Selling and administrative costs:Variable: P1 per unitFixed: P32,000

The contribution margin is calculated as difference between sales and variable costs.

Answered: NUBD, which began business at the start…

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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NUBD, which began business at the start of the current year, had the following data: Planned and actual production: 40,000 units Sales: 37,000 units a P15 per unit Production costs: Variable: P4 per unit Fixed: P260,000 Selling and administrative costs: Variable: P1 per unit Fixed: P32,000