Suppose that a company manufactures one single product. Annual production capacity is 100 tons. The company manufactured 50 tons and sold 40 tons this vear. Relevant data are as follows: (a) Sales: 40.000.000 $, (b) Direct material costs 14.000.000 $, (c) Direct labor 5.000.000$, (d) Qverhead (variable) 4.500.000 $, (e) Qxerhead (fixed) 8.000.000$. Eind the gross profit margin if the company emploxs full absorption costina And what would be the unit cost of production had the company emploved normal absorption costing?

Suppose that a company manufactures one single product. Annual production capacity is 100 tons. The company manufactured 50 tons and sold 40 tons this vear. Relevant data are as follows: (a) Sales: 40.000.000 $, (b) Direct material costs 14.000.000 $, (c) Direct labor 5.000.000$, (d) Qverhead (variable) 4.500.000 $, (e) Qxerhead (fixed) 8.000.000$. Eind the gross profit margin if the company emploxs full absorption costina And what would be the unit cost of production had the company emploved normal absorption costing?

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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