Question: During its first year, Walnut, Inc showed a $14 per unit profit under absorption costing but would have reported a total profit of $16,000 less
During its first year, Walnut, Inc showed a $14 per unit profit under absorption costing
but would have reported a total profit of $16,000 less under variable costing. If production
exceeded sales by 1000 units and average contribution margin of 62.5% was maintained,
What is the apparent:
- Fixed cost per unit
- Sales price per unit
- Variable cost per unit
- Unit sales volume if total profit under absorption costing was $168,000
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