RevenueVariable costs:Direct laborDirectmaterialsContributionmarginFixed costsProfit margin$0O $10,000($25,000)($10,000)product X$50,000O $50,000$20,000$30,000???product Y$80,000$30,000$20,000???atotal$130,000The company allocates fixed costs based on direct labor dollars. Compute theprofit margin for product line X.$50,000$50,000$30,000$25,000$5,000

Name: RevenueVariable costs:Direct laborDirectmaterialsContributionmarginFi
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Description: RevenueVariable costs:Direct laborDirectmaterialsContributionmarginFixed costsProfit margin$0O $10,000($25,000)($10,000)product X$50,000O $50,000$20,000$30,000???product Y$80,000$30,000$20,000???atotal$130,000The company allocates fixed costs based

PROFIT MARGIN = contribution margin - fixed cost whereas; contribution margin = revenue - variable…

Business

Accounting

Revenue Variable costs: Direct labor Direct materials Contribution margin Fixed costs Profit margin product X $50,000 $20,000 $30,000 ? ? ? product Y $80,000 $30,000 $20,000 ? ? ? total $130,000 $50,000 $50,000 $30,000 $25,000 $5,000 The company allocates fixed costs based on direct labor dollars. Compute the profit margin for product line X.

Revenue Variable costs: Direct labor Direct materials Contribution margin Fixed costs Profit margin product X $50,000 $20,000 $30,000 ? ? ? product Y $80,000 $30,000 $20,000 ? ? ? total $130,000 $50,000 $50,000 $30,000 $25,000 $5,000 The company allocates fixed costs based on direct labor dollars. Compute the profit margin for product line X.

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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Detail solution
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how do I explain this? Metric Score Percent of Total Possible Contribution Margin 4.7 /5 Plant Utilization 5.0 /5 Days of Working Capital 5.0 /5 Stock-out Costs 5.0 /5 Inventory Carrying Costs 3.6 /5 Overall Score 23.3 /25