Tasty Beverages began business in 2010 selling bottles of a thirst-quenching drink. Production for the first year
Question:
Ingredients used .................. $56,000
Direct labor .................. 26,000
Variable overhead ............... 48,000
Fixed overhead ................ 5,200
Variable selling expenses .............. 10,000
Fixed selling and administrative expenses ....... 28,000
Total actual cost ............... $173,200
For 2010:
a. What was the production cost per bottle under variable costing?
b. What was variable cost of goods sold?
c. What was the contribution margin per bottle?
d. What was the contribution margin ratio?
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
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