Pinecrest Industries began operations this year and recorded the following costs: Direct Materials: $45,000 Direct Labor: $38,000 Manufacturing Overhead: $27,000 Total Sales Revenue: $145,000 What is the gross margin for the first year? a) $35,000 b) $45,000 c) $35,000 d) $110,000

Pinecrest Industries began operations this year and recorded the following costs: Direct Materials: $45,000 Direct Labor: $38,000 Manufacturing Overhead: $27,000 Total Sales Revenue: $145,000 What is the gross margin for the first year? a) $35,000 b) $45,000 c) $35,000 d) $110,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Pinecrest Industries began operations this year and recorded the following
costs:
Direct Materials: $45,000 Direct Labor: $38,000 Manufacturing Overhead:
$27,000 Total Sales Revenue: $145,000
What is the gross margin for the first year?
a) $35,000
b) $45,000
c) $35,000
d) $110,000

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