Use the following information for questions 1-4. REM had no beginning inventory, and sold all inventory it
Question:
Use the following information for questions 1-4. REM had no beginning inventory, and sold all inventory it produced. The predicted financial information, production and sales volumes for November were as presented below.
Total
Expected units
150,000
Revenue
2,400,000
Costs of production
Variable production costs
1,068,000
Fixed production costs
250,000
Total costs of production
1,318,000
Gross margin
1,082,000
Selling, general, and administrative expenses
Variable selling, general, and administrative expenses
357,000
Fixed selling, general, and administrative expenses
500,000
Total selling, general, and administrative expenses
857,000
Net operating income
225,000
- What is REM Company's contribution margin?
- What is REM Company's total variable cost per unit?
- What is REM Company's contribution margin per unit?
- What would net operating income be if REM produced and sold 180,000 units instead of 150,000?
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker