Cullumber Company makes 2 products, sleep masks and sleep socks. Additional information follows: Sleep Masks Sleep Socks
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Cullumber Company makes 2 products, sleep masks and sleep socks. Additional information follows:
Sleep Masks | Sleep Socks | ||||||
---|---|---|---|---|---|---|---|
Units | 6,500 | 5,000 | |||||
Sales | $135,000 | $100,000 | |||||
Variable costs | 61,030 | 32,000 | |||||
Fixed costs | 34,320 | 34,000 | |||||
Net income | $39,650 | $34,000 | |||||
Profit per unit | $6.10 | $6.80 |
Compute the Contribution margin per unit. (Round answers to 2 decimal places, e.g. 15.25.)
Contribution margin per unit | |||
---|---|---|---|
Sleep Masks | $enter a dollar amount rounded to 2 decimal places | ||
Sleep Socks | $enter a dollar amount rounded to 2 decimal places |
Cullumber has unlimited demand for both products. Therefore, which product should the company encourage its sales people to emphasize?
select a product
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
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