A company that produces and sells a single product for $22 per
unit has provided the following volume and average cost data for
two accounting period:
Level of activity (unit) ----------------------------
---------------- 1,000 2,000
Direct materials -------------------------
------------------------ $4.00 $4.00
Direct
Labor----------------------------------------------------- $3.00
$3.00
Manufacturing
overhead-------------------------------------------- $3.50
$2.50
General, selling, and administrative
expenses-------------- $1.00 $0.50
1. The best estimate of the total contribution margin when 4,300
units are sold is:
$64,500
$45,150
$58,050
$51,600
2. The best estimate of the...