Chapter 2, Problem 25E

Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for $60 each. The actual variable unit cost is as follows:

Fixed overhead was $320,000. Fixed selling expenses consisted of advertising copayments totaling $110,000. Fixed administrative expenses were $236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was $148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was

Refer to the information in 2.24. The gross margin percentage for last year was

1. a. 12.57%
2. b. 55.67%
3. c. 28.95%
4. d. 38.33%