Chapter 1, Problem 5BD

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A business sells coffee mugs at $20 per unit. The costs per unit are: . Direct materials = $6.00 • Direct lab or = $2.50 • Variable overhead = $1.00 . • Variable selling expense = $1.50 Fixed manufacturing overhead = $30,000 Fixed selling/admin expenses = $10,000 They plan to sell 8,000 mugs. Required: a. Variable product cost per unit b. Total variable cost per unit c. Contribution margin per unit d. Contribution margin ratio

Kings Company has total assets of $240,000 and total liabilities of $80,000. The company's debt-to-equity ratio is closest to:

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If 150 million shares of common stock are issued with a par value of $3 and additional paid-in capital is $900 million, the total par value of the issued shares is:

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