Lincoln, Inc., which uses a volume-based cost system, produces cat condos that sell for $170 each. Direct

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Lincoln, Inc., which uses a volume-based cost system, produces cat condos that sell for $170 each. Direct materials cost $21 per unit, and direct labor costs $17 per unit. Manufacturing overhead is applied at a rate of 200% of direct labor cost. Nonmanufacturing costs are $28 per unit. What is the gross profit margin for the cat condos? (Round your intermediate calculations to nearest whole dollar.)

A. 41.2%

B. 58.8%

C. 57.6%

D. 41.3%

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Managerial Accounting

ISBN: 9780073526706

12th Edition

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

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