ZapaKing Limited is a manufacturing company that makes three kinds of products. The company is...
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Accounting
ZapaKing Limited is a manufacturing company that makes three kinds of products. The company is undergoing financial difficulties and the management has decided to scrap one of its product lines. The monthly manufacturing costs of 1,000 units for each of the product lines are given below. ZapaKing's selling prices for each of its products are: Product X= $97; Product Y= $91; Product Z= $87.50
Product X ($) Product Y ($) Product Z ($) Direct materials cost 50,000 40,000 35,000 Direct labor costs 20,000 25,000 30,000 Variable overhead 15,000 10,000 8,000 Fixed overhead 5,000 6,000 3,500
a) What is the profit per unit for each product line?
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