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For Year Ended December 31 Contribution Margin Income Statement Sales (90,000 units). Variable costs Direct materials Direct labor Variable overhead i Contribution margin Fixed costs Buon margin income statement TORC Fixed overhead Fixed general and administrative Income Per Unit $ 60.00 30.00 9.00 10.00 11.00 3.00 2.00 $6.00 Annual Total $5,400,000 2,700,000 810,000 900,000 990,000 270,000 180,000 $ 540,000 A potential customer offers to buy 11,000 units for $50.00 each. These sales would not affect the company's

For Year Ended December 31 Contribution Margin Income Statement Sales (90,000 units). Variable costs Direct materials Direct labor Variable overhead i Contribution margin Fixed costs Buon margin income statement TORC Fixed overhead Fixed general and administrative Income Per Unit $ 60.00 30.00 9.00 10.00 11.00 3.00 2.00 $6.00 Annual Total $5,400,000 2,700,000 810,000 900,000 990,000 270,000 180,000 $ 540,000 A potential customer offers to buy 11,000 units for $50.00 each. These sales would not affect the company's

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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FURY produces and sells skateboards. Its contribution margin income statement follows. Contribution Margin Income Statement For Year Ended December 31 Sales (90,000 units) Variable costs Direct materials Direct labor. Variable overhead i Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income Per Unit $ 60.00 30.00 9.00 10.00 11.00 3.00 2.00 $ 6.00 Annual Total $ 5,400,000 2,700,000 810,000 900,000 990,000 270,000 180,000 $ 540,000 A potential customer offers to buy 11,000 units for $50.00 each. These sales would not affect the company's sales through its normal channels Details of the special offer follow. • Variable costs per unit would not change. Accepting the offer would require incremental fixed overhead costs of $11,000 Accepting the offer would require incremental fixed general and administrative costs of $16,500
Transcribed Image Text:FURY produces and sells skateboards. Its contribution margin income statement follows. Contribution Margin Income Statement For Year Ended December 31 Sales (90,000 units) Variable costs Direct materials Direct labor. Variable overhead i Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income Per Unit $ 60.00 30.00 9.00 10.00 11.00 3.00 2.00 $ 6.00 Annual Total $ 5,400,000 2,700,000 810,000 900,000 990,000 270,000 180,000 $ 540,000 A potential customer offers to buy 11,000 units for $50.00 each. These sales would not affect the company's sales through its normal channels Details of the special offer follow. • Variable costs per unit would not change. Accepting the offer would require incremental fixed overhead costs of $11,000 Accepting the offer would require incremental fixed general and administrative costs of $16,500
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