Selling Price
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Please help with the following problem involving selling price and required contribution margins.
Anna & Anna Corporation is a small table manufacturing company operating in the north of Puerto Rico. Managers estimate the following costs per unit (one table)
Direct material (DM) $45.00
Direct labor (DL) $20.00
Variable manufacturing overhead(VMO) $24.00
Variable administrative expenses (VAE) $25.00
Monthly fixed costs are
Manufacturing $12,000.00
Administrative $10,000.00
The estimated contribution margin is 40%
Find the selling price per unit to achieve the required contribution margin of 35%.
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Solution Summary
The solution explains how to calculate the selling price per unit so as to achieve the required contribution margin of 35%. Concepts covered include direct material, direct labor, variable manufacturing overhead, variable administrative expenses.
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Problem: Anna & Anna Corporation is a small table manufacturing company operating in the north of Puerto Rico. Managers estimate the following costs per unit (one table). Find the ...
Purchase this Solution
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