Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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Transcribed Image Text:Davidson Corp., which began business at the start of the current year, had the following data:
.
Planned and actual production: 50,000 units
Sales: 45,000 units at $18 per unit
Production costs:
•
Variable cost per unit: $6
•
Total fixed production cost: $300,000
What is the gross margin that the company would disclose on an absorption-costing income statement?
A. $0
B. $150,000
C. $270,000
D. $390,000
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