Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
14th Edition
ISBN: 9781337541398
Author: Carl Warren; James M. Reeve; Jonathan Duchac
Publisher: Cengage Learning
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Chapter 6, Problem 6BE

(a)

To determine

Contribution Margin

Contribution margin is the excess of manufacturing margin above selling and administrative expenses. Contribution margin is calculated by deducting variable cost from sales or deducting variable selling and administrative expenses from manufacturing margin.

The variable cost quantity factor, when volume increased by 2,400 units to actual total units.

(b)

To determine

The unit cost factor for variable cost of goods sold.

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Contribution Margin Analysis The actual variable cost of goods sold for a product was $30 per unit, per unit, while the planned variable cost of goods sold was $35 per unit. The volume decreased by 4,400 units to 55,200 actual total units. Enter all amounts as positive numbers. a. Determine variable cost quantity factor. b. Determine the unit cost factor for variable cost of goods sold. s
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Chapter 6 Solutions

Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only

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