ACC 202 MANAGERIAL ACCOUNTING >C<
ACC 202 MANAGERIAL ACCOUNTING >C<
21st Edition
ISBN: 9781264444489
Author: Garrison
Publisher: MCG CUSTOM
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Chapter 9, Problem 8Q
To determine

Concept Introduction:

A favorable variance shows that the actual cost was lower than expected, at the given actual level of activity. An unfavorable variance show that the actual cost was higher than expected at the actual level of activity.

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Chapter 18 Homework i Saved 15 Exercise 18-14 (Algo) Contribution margin income statement LO C2 1 points eBook Hint Sunn Company manufactures a single product that sells for $190 per unit and whose variable costs are $133 per unit. The company's annual fixed costs are $628,000. The sales manager predicts that next year's annual sales of the company's product will be 39,800 units at a price of $198 per unit. Variable costs are predicted to increase to $138 per unit, but fixed costs will remain at $628,000. What amount of income can the company expect to earn under these predicted changes? Prepare a contribution margin income statement for the next year. SUNN COMPANY Contribution Margin Income Statement Units $ per unit 39,800 $ 198 Ask Sales Variable costs 39,800 Print Contribution margin 39,800 Fixed costs Income References Mc Graw Hill $ 7,880,400 138 5,492,400 2,388,000 628,000 $ 1,760,000 Help Save & Exit Submit Check my work
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