Princeton Fabrication, Inc., produced and sold 1,300 units of the company's only product in March. You have
Question:
Princeton Fabrication, Inc., produced and sold 1,300 units of the company's only product in March. You have collected the following information from the accounting records:
Sales Price ............................................. $134
Manufacturing Costs:
Fixed overhead for the month .................... 18,200
Direct labor per unit ...................................... 8
Direct Materials per unit ............................... 30
Variable overhead per unit ............................... 25
Marketing and administrative costs:
Fixed costs for the month ......................... 23,400
Variable costs per unit ...................................... 3
Find the following:
Variable manufacturing cost per unit
Full cost per unit
Variable cost per unit
Full absorption cost per unit
Prime cost per unit
Conversion cost per unit
Profit margin per unit
Contribution margin per unit
Gross margin per unit
Contribution MarginContribution 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...
Step by Step Answer:
Managerial Accounting
ISBN: 9781259275814
11th Canadian Edition
Authors: Ray H Garrison, Alan Webb, Theresa Libby