Diego Company manufactures one product that is sold for $80 per unit. The following information pertains...
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Diego Company manufactures one product that is sold for $80 per unit. The following information pertains to the company's first year of operations in which it produced 40,000 units and sold 35,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labour WWWMWA $24 $14 $2 $4 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $800,000 Fixed selling and administrative expenses $496,000 Required: expenses $496,000 Required: Answer each question independently based on the original data unless instructed otherwise. What is the unit product cost under variable costing? What is the unit product cost under absorption costing? What is the company's total contribution margin under variable costing? What is the company's net operating income under variable costing? What is the company's total gross margin under absorption costing? What is the company's net operating income under absorption costing? What is the company's break-even point in unit sales? Is it above or below the actual sales volume? Compare the break-even sales volume to your answer for question 6 and comment. 1. 2. 3. 4. 5. 6. 7. 8. What is the CM ratio under variable costing? I Diego Company manufactures one product that is sold for $80 per unit. The following information pertains to the company's first year of operations in which it produced 40,000 units and sold 35,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labour WWWMWA $24 $14 $2 $4 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $800,000 Fixed selling and administrative expenses $496,000 Required: expenses $496,000 Required: Answer each question independently based on the original data unless instructed otherwise. What is the unit product cost under variable costing? What is the unit product cost under absorption costing? What is the company's total contribution margin under variable costing? What is the company's net operating income under variable costing? What is the company's total gross margin under absorption costing? What is the company's net operating income under absorption costing? What is the company's break-even point in unit sales? Is it above or below the actual sales volume? Compare the break-even sales volume to your answer for question 6 and comment. 1. 2. 3. 4. 5. 6. 7. 8. What is the CM ratio under variable costing? I
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Related Book For
Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
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