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Calculate expected gross margin if Ashley produces 18,000​, 27,000​, or 29,700 books.​ (Make sure you include the​ production-volume variance as part of cost of goods​ sold.)   Estimated sales 18,000 books Beginning inventory 0 books Average selling price $77 per book Variable production costs $52 per book Fixed production costs $288,000 per semester

Calculate expected gross margin if Ashley produces 18,000​, 27,000​, or 29,700 books.​ (Make sure you include the​ production-volume variance as part of cost of goods​ sold.)   Estimated sales 18,000 books Beginning inventory 0 books Average selling price $77 per book Variable production costs $52 per book Fixed production costs $288,000 per semester

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 29BEB: Sales Needed to Earn Target Income Chillmax Company plans to sell 3,500 pairs of shoes at 60 each in...
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1.
Calculate expected gross margin if
Ashley
produces
18,000​,
27,000​,
or
29,700
books.​ (Make sure you include the​ production-volume variance as part of cost of goods​ sold.)

 

Estimated sales
18,000 books
Beginning inventory
0 books
Average selling price
$77 per book
Variable production costs
$52 per book
Fixed production costs
$288,000 per semester
 
The​ fixed-cost allocation rate is based on expected sales and is therefore equal to
$288,000
​÷
18,000
books​ =
$16
per book.
 
 
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