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Cagney Industries has the following cost information for the year just ended:
Direct materials $ 1.00 per unit
Direct labor $ 2.00 per unit
Variable manufacturing overhead $ 1.50 per unit
Fixed manufacturing overhead $ 30,000
Variable selling and administrative cost $ 0.50 per unit
Fixed selling and administrative cost $ 25,000
During the year, Cagney produced 6,000 units, out of which 5,400 were sold for $20 each.
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