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Question - Horton Corporation entered into the following transactions during its first year of operations. All transactions involve cash.
1) Acquired $2,000 of capital from the owners.
2) Purchased $600 of direct raw materials.
3) Used $500 of these direct raw materials in the production process.
4) Paid production workers $900 cash.
5) Paid $400 for manufacturing overhead (applied and actual overhead are the same).
6) Started and completed 200 units of inventory.
7) Sold 50 units at a price of $12 each.
8) Paid $80 for selling and administrative expenses.
Required - Determine the absorption net income for this month.
During the month of August. Star Plastics had $70,000 of labor costs that were traced to specific jobs.
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Last month when Holiday Creations, lnc., sold 38,000 units, total sales were $282,000, What is the company's contribution margin [CM] ratio
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