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Razor Inc. manufactures industrial components. One of its products used as a subcomponent in auto manufacturing is Fluoro2211. The selling price and cost per unit data for 9,170 units of Fluoro2211 are as follows. Selling Price Direct Materials. Direct Labor Variable Manufacturing Overhead. Fixed Manufacturing Overhead Variable Selling Fixed Selling and Administrative Total Costs Operating Margin Per Unit Data $ 490 190 32 29 47 20 27 345 $ 145 During the next year, sales of Fluoro2211 are expected to be 10,170 units. All costs will remain the same except for fixed manufacturing overhead, which will increase by 20%, and direct materials, which will increase by 10%. The selling price

Razor Inc. manufactures industrial components. One of its products used as a subcomponent in auto manufacturing is Fluoro2211. The selling price and cost per unit data for 9,170 units of Fluoro2211 are as follows. Selling Price Direct Materials. Direct Labor Variable Manufacturing Overhead. Fixed Manufacturing Overhead Variable Selling Fixed Selling and Administrative Total Costs Operating Margin Per Unit Data $ 490 190 32 29 47 20 27 345 $ 145 During the next year, sales of Fluoro2211 are expected to be 10,170 units. All costs will remain the same except for fixed manufacturing overhead, which will increase by 20%, and direct materials, which will increase by 10%. The selling price

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Razor Inc. manufactures industrial components. One of its products used as a subcomponent in auto manufacturing is Fluoro2211. The selling price and cost per unit data for 9,170 units of Fluoro2211 are as follows. Selling Price Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Variable Selling Fixed Selling and Administrative Total Costs Operating Margin Per Unit Data $ 490 190 32 29 47 20 27 345 $ 145 During the next year, sales of Fluoro2211 are expected to be 10,170 units. All costs will remain the same except for fixed manufacturing overhead, which will increase by 20%, and direct materials, which will increase by 10%. The selling price per unit for next year will be $500. Based on these data, Razor Inc.'s total contribution margin for next year will be: (CMA adapted)
Transcribed Image Text:Razor Inc. manufactures industrial components. One of its products used as a subcomponent in auto manufacturing is Fluoro2211. The selling price and cost per unit data for 9,170 units of Fluoro2211 are as follows. Selling Price Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Variable Selling Fixed Selling and Administrative Total Costs Operating Margin Per Unit Data $ 490 190 32 29 47 20 27 345 $ 145 During the next year, sales of Fluoro2211 are expected to be 10,170 units. All costs will remain the same except for fixed manufacturing overhead, which will increase by 20%, and direct materials, which will increase by 10%. The selling price per unit for next year will be $500. Based on these data, Razor Inc.'s total contribution margin for next year will be: (CMA adapted)
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