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Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993 Exercise 6
Cost Concepts
Princeton Fabrication, Inc., produced and sold 800 units of the company's only product in March. You have collected the following information from the accounting records:
Required
a. Compute:
1. Variable manufacturing cost per unit.
2. Full cost per unit.
3. Variable cost per unit.
4. Full absorption cost per unit.
5. Prime cost per unit.
6. Conversion cost per unit.
7. Profit margin per unit.
8. Contribution margin per unit.
9. Gross margin per unit.
b. If the number of units increases from 800 to 1,000, which is within the relevant range, will the fixed manufacturing cost per unit increase, decrease, or remain the same Explain.
Princeton Fabrication, Inc., produced and sold 800 units of the company's only product in March. You have collected the following information from the accounting records:
Required
a. Compute:
1. Variable manufacturing cost per unit.
2. Full cost per unit.
3. Variable cost per unit.
4. Full absorption cost per unit.
5. Prime cost per unit.
6. Conversion cost per unit.
7. Profit margin per unit.
8. Contribution margin per unit.
9. Gross margin per unit.
b. If the number of units increases from 800 to 1,000, which is within the relevant range, will the fixed manufacturing cost per unit increase, decrease, or remain the same Explain.
Explanation
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Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
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