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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 ...

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