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The company manufactures and sells one product. Data for the first year of operations.
Variable cost per unit:
direct materials $92
Fixed cost per year:
direct labor $720,000
fixed manufacturing overhead $3,264,000
fixed selling and admin $1,935,000
There aren't any variable manufacturing overhead costs or variable selling and admin costs. During the first year, the company produced 48,000 units and sold 45,000 units. The company's only product sells for $258 unit.
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