COST MANAGEMENT: PLEASE SHOW ALL COMPUTATIONS IN DETAIL
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4. Lau & Lau, Ltd. of Hong Kong manufacture
two products for the same market. Its budget and operating results
for the year just completed follow:
Actual Budget
Unit of sales
Product A 30,000 35,000
Product B 60,000 65,000
Contribution per unit
Product A $4.00 $3.00
Product B 10.00 12.00
Selling price per unit
Product A $10.00 $12.00
Product B 25.00 24.00
At the time of budget preparation,...