Cost Accounting (15th Edition)
Cost Accounting (15th Edition)
15th Edition
ISBN: 9780133428704
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Chapter 18, Problem 18.16E

1.

To determine

To compute: The normal and abnormal spoilage units.

Given information:

Total spoiled units are 12,600.

Normal spoilage is 4% of goods units passing inspection.

2.

To determine

To compute: The amount of potential saving.

Given information:

Normal spoilage is 8,500.

Abnormal spoilage is 4,100.

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Sunshine Blender Company sold 7,000 units in October at a sales price of $40 per unit. The variable cost is $25 per unit. Calculate the total contribution margin. OA. $280,000 OB. $105,000 OC. $87,500 OD. $175,000
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