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Finance Problems for Nevada Company

Nevada Company provided the following information regarding its only product: skateboards. (No inventories at beginning or end of year)
Direct materials used $200,000
Direct labor $80,000
Fixed overhead $180,000
Fixed selling and administrative costs $150,000
Variable overhead $30,000
Variable selling and administrative $60,000
Selling unit price $120

Units produced and sold 10,000

(1) What is the total gross profit margin (gross profit) for this product?
(2) What is the total gross profit margin in dollars per unit?
(3) Calculate the contribution margin in total dollars
(4) Calculate the contribution dollars per unit
(5) Given the information, based on a numeric test only (ignoring qualitative issues) and assuming you had extra capacity, would you accept a special order at $75 per unit?

Solution Summary

Finance problems for Nevada Company is determined.