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bernie2981 bernie2981
wrote...
Posts: 3810
9 years ago
Stanley's Candies is considering building a new plant in Europe. It predicts sales at the new plant to be 40,000 units at $4.00/unit. Below is a listing of estimated expenses:

Category   Total Annual Expenses   % of Annual Expense that are Fixed
Materials   $20,000   10%
Labor   $30,000   20%
Overhead   $50,000   40%
Marketing/Admin   $10,000   60%

A European firm was contracted to sell the product and will receive a commission of 10% of the sales price. No U.S. home office expenses will be allocated to the new facility.

The unit variable cost for Stanley's Candies is
A) $1.25.
B) $2.30.
C) $3.15.
D) $1.90.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
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nucleinuclei
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Posts: 2158
8 years ago
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bernie2981 Author
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8 years ago
You're such a dedicated member, I very much appreciate the help.

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