Reference no: EM132470583
Problem - Energy ++ is a company that produced food products for people active in sports. The following budgeted volume and costs has been provided for one of their post-workout beverages:
Budgeted production 65,000 units
Selling price $4 per unit
Direct material cost $1.25 per unit
Direct Labour cost $0.20 per unit
Fixed Manufacturing costs $19,500
Variable Manufacturing costs $0.25 per unit
Variable Administrative costs $0.01 per unit
Fixed Administrative costs $3,900
Required - Calculate the following amounts
a) Gross margin per unit under absorption costing.
b) Contribution margin per unit under variable costing.
c) Contribution margin per unit under throughput costing.