Production capacity is 2,000,000 units. Direct materials are $.10, Direct labor is $.25, Variable overhead is $.15,
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Question:
If fixed costs are the same, but only 1,600,000 units are produced and sold does the fixed cost per unit increase or decrease? And what is the fixed cost per unit? What is the total cost per unit? If the sales price per unit remains at $1.75, how much gross margin will be earned?
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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