The following costs have been estimated based on sales of 30,000 units: Total Annual Costs Percent That Is Variable Direct materials $ 300,000 100 % Direct labor 250,000 100 % Manufacturing overhead 250,000 50 % Selling and administrative 150,000 25 %What selling price (rounded to two decimal places) will yield a contribution margin of 40%?
The following costs have been estimated based on sales of 30,000 units: Total Annual Costs Percent That Is Variable Direct materials $ 300,000 100 % Direct labor 250,000 100 % Manufacturing overhead 250,000 50 % Selling and administrative 150,000 25 %What selling price (rounded to two decimal places) will yield a contribution margin of 40%?
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...
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- The following costs have been estimated based on sales of 30,000 units:
Total Annual Costs Percent That Is Variable Direct materials $ 300,000 100 % Direct labor 250,000 100 % Manufacturing overhead 250,000 50 % Selling and administrative 150,000 25 %
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