ABC Corp. manufactures and sells a single product. The following information is available for the current year:
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Question:
ABC Corp. manufactures and sells a single product. The following information is available for the current year:
Selling price per unit: $60
Variable cost per unit: $40
Fixed costs: $120,000
Total units produced: 20,000
Total units sold: 18,000
a) Calculate the contribution margin per unit and the contribution margin ratio.
b) Calculate the company's profit or loss for the year.
c) Calculate the company's margin of safety in dollars.
Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
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