Razor Inc. manufactures industrial components. One of its products used as a subcomponent in auto manufacturing is Fluoro2211. The selling price and cost per unit data for 9,000 units of Fluoro2211 are as follows. Per Unit DataSelling 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 direct materials, 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: (CMA adapted)
A. $980,000.
B. $882,000.
C. $1,080,000.
D. $972,000.
Answer: C
You might also like to view...
What are the three approaches for inoculating against the arguments of other parties?
What will be an ideal response?
Modern salespeople bring incremental value to the customer by identifying problems and opportunities, offering alternative options and solutions, and providing solutions with tangible value. These functions of salespeople can be classified under the ________ role.
A. mapmaking B. influencing C. fire starting D. guiding E. surveying
On the statement of cash flows, the issuance of capital stock for cash to be used for future expansion of a production facility is treated as an investing activity
Indicate whether the statement is true or false
The Branson Company uses the percent of sales method of accounting for uncollectible accounts receivable. During the current year, the following transactions occurred:Mar 7Branson Company determined that the $2,000 account receivable of the Bing Company was uncollectible, and wrote it off.Jun 9Bing Company paid $1,500 of the amount owed to the BransonCompany. Branson Company does not expect further collections from the Bing Company.Dec 31Branson Company estimates that 1.5% of its $900,000 of credit sales will be uncollectible.Prepare the general journal entries to record these transactions.
What will be an ideal response?