Morrisroe Corporation has provided the following information:??Cost per UnitCost per Period?Direct materials$6.65??Direct labor$3.30??Variable manufacturing overhead$1.70??Fixed manufacturing overhead?$10,000?Sales commissions$1.00??Variable administrative expense$0.50??Fixed selling and administrative expense?$5,000Required:a. If the selling price is $25.90 per unit, what is the contribution margin per unit sold?b. What incremental manufacturing cost will the company incur if it increases production from 5,000 to 5,001 units?
What will be an ideal response?
a.
| ? | Selling price per unit | ? | $25.90 |
| ? | Direct materials | $6.65 | ? |
| ? | Direct labor | 3.30 | ? |
| ? | Variable manufacturing overhead | 1.70 | ? |
| ? | Sales commissions | 1.00 | ? |
| ? | Variable administrative expense | 0.50 | ? |
| ? | Variable cost per unit sold | ? | 13.15 |
| ? | Contribution margin per unit | ? | $12.75 |
b.
| ? | Direct materials | $6.65 |
| ? | Direct labor | 3.30 |
| ? | Variable manufacturing overhead | 1.70 |
| ? | Incremental manufacturing cost | $11.65 |
You might also like to view...
When a company acquires consumer-panel data from firms like A.C. Nielsen Company and Information Resources Inc., which of the following steps to improve the quality of a company marketing intelligence system is the company resorting to?
A) training and motivating the sales force to spot and report new developments B) motivating distributors, retailers, and other intermediaries to pass along important intelligence C) hiring external experts to collect intelligence D) using external network E) purchasing information from outside research firms and vendors
The United Auto Workers, United Steelworkers, and Office and Professional Employees International Union are all classified as __________ unions.
A. skilled B. mixed C. industrial D. craft
Which of the following is NOT an advantage of ISO 9000 certification?
a. It is a worldwide indicator of quality. b. It can increase a firm’s credibility. c. It can lower the cost of manufacturing. d. It improves marketability of a firm’s products.
The FASB requires not-for-profits to prepare a statement of cash flows.
Answer the following statement true (T) or false (F)