Naylor Manufacturing Ltd. sold 8,000 units and recorded sales of $400,000 for the first month of 2022.

Question:

Naylor Manufacturing Ltd. sold 8,000 units and recorded sales of $400,000 for the first month of 2022. In making the sales, the company incurred the following costs and expenses.

Instructions

a. Prepare a CVP income statement for the month ended January 31, 2022.

b. Calculate the contribution margin per unit.

c. Calculate the contribution margin ratio.

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Managerial Accounting Tools For Business Decision Making

ISBN: 9781119731825

6th Canadian Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Ibrahim M. Aly, Donald E. Kieso

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Question Posted: May 09, 2023 06:34 AM

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Naylor Manufacturing Ltd. sold 8,000 units and recorded sales of $400,000 for the first month of 2022.

Question:

Cost of goods sold Selling expenses Administrative expenses Variable $184,000 40,000 16,000 Fixed $70,000 30,000 40,000

Step by Step Answer:

a b 160000 8000 20 contribution margin per unit c 20 50 40 con...View the full answer

Managerial Accounting Tools For Business Decision Making

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