Question: Using the values below, What were the total fixed costs? If the average selling price was $2.00, how much gross margin did the company generate?

Using the values below, What were the total fixed costs? If the average selling price was $2.00, how much gross margin did the company generate?

Operating capacity is 2 million notebooks. That is also the number produced and sold. Total unit cost is $1.25.

Direct material $.10

Direct labor .20

Variable overhead .15

Fixed overhead .80

Total cost per unit $1.25

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