New Wings is a furniture manufacturer. In March, the company produced and sold 1,400 dining chairs (the company’s only p
Posted: Thu May 19, 2022 2:44 pm
New Wings is a furniture manufacturer. In March, the company
produced and sold 1,400 dining chairs (the company’s only product).
The accountant has collected the following information from the
accounting records:
Sales price (per unit)
$136
Manufacturing costs:
Fixed overhead (for the month)
$15,400
Direct labor (per unit)
$7
Direct materials (per unit)
$31
Variable overhead (per unit)
$26
Marketing and administrative costs:
Fixed costs (for the month)
$22,400
Variable costs (per unit)
$4
Conversion cost per unit
Profit margin per unit
Contribution margin per unit
Gross margin per unit
produced and sold 1,400 dining chairs (the company’s only product).
The accountant has collected the following information from the
accounting records:
Sales price (per unit)
$136
Manufacturing costs:
Fixed overhead (for the month)
$15,400
Direct labor (per unit)
$7
Direct materials (per unit)
$31
Variable overhead (per unit)
$26
Marketing and administrative costs:
Fixed costs (for the month)
$22,400
Variable costs (per unit)
$4
Conversion cost per unit
Profit margin per unit
Contribution margin per unit
Gross margin per unit