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Yakvenalex [24]
2 years ago
12

Razor Inc. manufactures industrial components. One of its products used as a subcomponent in auto manufacturing is Fluoro2211. T

he selling price and cost per unit data for 9,000 units of Fluoro2211 are as follows. Per Unit Data Selling Price $150 Direct Materials 20 Direct Labor 15 Variable Manufacturing Overhead 12 Fixed Manufacturing Overhead 30 Variable Selling 3 Fixed Selling and Administrative 10 Total Costs 90 Operating Margin $60 During the next year, sales of Fluoro2211 are expected to be 10,000 units. All costs will remain the same except for fixed manufacturing overhead, which will increase by 20%, and material, which will increase by 10%. The selling price per unit for next year will be $160. Based on these data, Razor Inc.'s total contribution margin for next year will be: Group of answer choices $882,000. $980,000. $972,000. $1,080,000.
Business
1 answer:
dolphi86 [110]2 years ago
7 0

Answer:

d. $1,080,000

Explanation:

Contribution per unit = Selling price per unit - Variable cost per unit

Contribution per unit = Selling price per unit - ( Direct Materials + Direct Labor + Variable Manufacturing Overhead + Variable Selling )

Contribution per unit = $160 - ($22 + $15+ $12 + $3)

Contribution per unit = $160 - $52

Contribution per unit = $108 per unit

Contribution margin for the next year = $108 per unit * 10,000

Contribution margin for the next year = $1,080,000

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Duncan Corp. introduces four modified versions of its popular brand of Maxims morning cereal. The four new variants of cereal in
pav-90 [236]

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Line extension

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A firm purchased raw materials on account and paid for them within 30 days. The raw materials were used in manufacturing a finis
Nataly_w [17]

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It is calculated with the following formula,

= Days of Inventory Outstanding + Days of Sales Outstanding - Days of Payables Outstanding

Where,

Days of Inventory Outstanding is the amount of days it takes to convert inventory to sales

Days of Sales Outstanding is the amount of time it takes debtors to pay the company for goods they bought and,

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Plugging in the figures we have,

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7 0
2 years ago
Slovac Company purchased a machine that has an estimated useful life of eight years for $7,500. Its salvage value is estimated a
saw5 [17]

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To calculate the depreciation value using Double-declining balance formula = 2 X Cost of the asset X Depreciation rate

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2 x  $5625 x 12.5% = $1,406.25

Therefore the answer is $1,406

8 0
1 year ago
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