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Lincoln, Inc., which uses a volume-based cost system, produces cat condos that sell for $145 each. Direct materials cost $17
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Answer #1

Gross profit = Selling price - Cost of Goods Sold

= 145 - [(17+12+(12*200%)]

= 145 - 53

= 92

Gross profit margin = Gross Profit/selling price = 92/145

= 63.4%

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