Alaska Airlines is in the process of preparing a contribution margin income statement that will...
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Alaska Airlines is in the process of preparing a contribution margin income statement that will allow a detailed look at its variable costs and profitability of operations. Which one of the following cost combinations should be used to evaluate the variable cost per Seattle-Pullman flight of Alaska Airlines? A. Flight crew salary, fuel, and engine maintenance. B. Fuel, food service, and airport landing fees. C. Airplane depreciation, baggage handling, and airline marketing. D. Communication system operation, food service, and ramp personnel. Golden Company has posted the following financial information for the current year. Raw material per unit $20.00 Direct labor per unit $25.00 Variable manufacturing overhead per unit $10.00 Fixed manufacturing overhead per unit $15.00 Total unit cost $70.00 Fixed manufacturing cost is based on an annual activity level of 8,000 units. Based on these data, what amount of total manufacturing cost if 9,000 unit were produced in current year? A. $560,000. B. $575,000. C. $615,000. D. $630,000
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