Montier Corporation produces one product. Its cost includes direct materials ($10 per unit), direct labor ($8 per unit), variable overhead ($5 per unit), fixed manufacturing ($225,000), and fixed selling and administrative ($30,000). In October 2017, Montier produced 25,000 units and sold 20,000 at $50 each.
b)
MONTIER CORPORATION INCOME STATEMENT FOR THE MONTH ENDED OCTOBER 31,2017 (VARIABLE COSTING) |
|
Sales (20000*50) | 1000000 |
variable expense (20000*23) | 460000 |
contribution margin | 540000 |
Fixed cost | 255000 |
Net income /(loss) | 285000 |
**Variable expense =Direct material +Direct labor + variable overhead
= 10 + 8 +5
= $ 23 per unit
**Fixed cost :Fixed manufacturing +Fixed selling and administrative
= 225000 + 30000
= 255000
Montier Corporation produces one product. Its cost includes direct materials ($10 per unit), direct labor ($8...
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