A manufacturer reports direct materials of $ per unit, direct labor of $ per unit, and variable overhead of $ per unit. Fixed overhead is $ per year, and the company estimates sales of units at a sales price of $ per unit for the year. The company has no beginning finished goods inventory.
If the company uses absorption costing, compute gross profit assuming a units are produced and units are sold and b units are produced and units are sold.
If the company uses variable costing, how much would contribution margin differ if the company produced units instead of producing Assume the company sells units. Hint: Calculations are not required.
Complete this question by entering your answers in the tabs below.
If the company uses absorption costing, compute gross profit assuming a units are produced and units are sold and b units are produced and units are sold.
tableSalestablea UnitsProduced and Units Soldtableb UnitsProduced and Units Sold$$Cost of goods soldGross profit,,,,
