Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows:ProductSales Priceper UnitVariable Costper UnitAA$50 $25 BB45 10 CC30 15 Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $390,000 per year.A. What are total variable costs for Morris with their current product mix?

Variable costs are the costs that vary with the changes in the total output but it does not change…

Answered: Morris Industries manufactures and…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6PA: Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit...

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Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows:

Product	Sales Price per Unit	Variable Cost per Unit
AA	$50	$25
BB	45	10
CC	30	15

Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $390,000 per year.

A. What are total variable costs for Morris with their current product mix?

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