Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Please given answer general Accounting
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- Let's say that ABC company manufactures and sells 20,000 units of its product yearly. A single product includes these costs: Direct materials: $3 per unit Direct labor: $5 per unit Variable manufacturing overhead: $2 per unit Fixed manufacturing overhead: $35,000 per year, which computes to a $1.75 per unit cost ($35,000/20,000 annual units) Can you explain what the per unit cost of the product would be under the Absorption and Variable costing methods?arrow_forwardSnower Corporation sells product G for $150 per unit, the variable cost per unit is $105, and the fixed costs are $720,000. What is the sales (in dollars) required to realize operating income of $40,000?arrow_forwardAt its $60 selling price, Atlantic Company has sales of $15,000, variable manufacturing costs of $4,000, fixed manufacturing costs of $1,000, variable selling and administrative costs of $2,000 and fixed selling and administrative costs of $1,000. What is the company's contribution margin per unit?arrow_forward
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