Data on the three models and selected costs follow. Year 1 Units produced and sold Red...

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Data on the three models and selected costs follow. Year 1 Units produced and sold Red 6,000 Yellow 11,000 Green 21,000 Total 38,000 Sales price per unit $ 160 $ 130 $ 60 Direct materials cost per unit $ 75 $ 55 $ 35 Direct labor-hours per unit 3 2 0.3 Wage rate per hour $ 13 $ 13 $ 13 Total manufacturing overhead $ 833,400 This year (year 2), the company only produced the Yellow and Green models. Total overhead was $764,100. All other volumes, unit prices, costs, and direct labor usage were the same as in year 1. The product cost system at Dolan Products allocates manufacturing overhead based on direct labor-hours. Required: a. Compute the product costs and gross margins (revenue less cost of goods sold) for the three products and total gross profit (loss) for year 1. b. Compute the product costs and gross margins (revenue less cost of goods sold) for the two remaining products and total gross profit (loss) for year 2 c. Should Dolan Products drop Yellow for year 3? Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the product costs and gross margins (revenue less cost of goods sold) for the three products and total gross profit (loss) for year 1. Note: Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. Product cost per unit Gross margin (loss) per unit Total gross profit (loss) Red Yellow Green Total Data on the three models and selected costs follow. Year 1 Units produced and sold Red 6,000 Yellow 11,000 Green 21,000 Total 38,000 Sales price per unit $ 160 $ 130 $ 60 Direct materials cost per unit $ 75 $ 55 $ 35 Direct labor-hours per unit 3 2 0.3 Wage rate per hour $ 13 $ 13 $ 13 Total manufacturing overhead $ 833,400 This year (year 2), the company only produced the Yellow and Green models. Total overhead was $764,100. All other volumes, unit prices, costs, and direct labor usage were the same as in year 1. The product cost system at Dolan Products allocates manufacturing overhead based on direct labor-hours. Required: a. Compute the product costs and gross margins (revenue less cost of goods sold) for the three products and total gross profit (loss) for year 1. b. Compute the product costs and gross margins (revenue less cost of goods sold) for the two remaining products and total gross profit (loss) for year 2 c. Should Dolan Products drop Yellow for year 3? Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the product costs and gross margins (revenue less cost of goods sold) for the three products and total gross profit (loss) for year 1. Note: Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. Product cost per unit Gross margin (loss) per unit Total gross profit (loss) Red Yellow Green Total

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To compute the product costs and gross margins for the three products and total gross profit for year 1 we need to calculate the cost of goods sold COGS for each product and subtract it from the sales ... View the full answer