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Maryland Novelties Company Produces and Sells Souvenir Products

Question 72

Essay

Maryland Novelties Company produces and sells souvenir products. Monthly income statements for two activity levels are provided below: Maryland Novelties Company produces and sells souvenir products. Monthly income statements for two activity levels are provided below: Required: 1) Identify the mixed expense(s). 2) Use the high-low method to separate the mixed costs into variable and fixed components. 3) Prepare a contribution margin income statement at the 20,000-unit level.
Required:
1) Identify the mixed expense(s).
2) Use the high-low method to separate the mixed costs into variable and fixed components.
3) Prepare a contribution margin income statement at the 20,000-unit level.

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