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The managers at the Wicker Basket Manufacturing Mart assemble two baskets, a standard wicker basket ...

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The managers at the Wicker Basket Manufacturing Mart assemble two baskets, a standard wicker basket ...

The managers at the Wicker Basket Manufacturing Mart assemble two baskets, a standard wicker basket and a deluxe wicker basket, at a plant in Virginia Beach, Virginia. Only 200 machine hours are available daily to produce the baskets. The managerial accountant reported the following information:

   Standard Basket   Deluxe Basket
Selling price   $360   $400
Variable cost per unit     90    140
Contribution margin per unit   ?   ?
Contribution margin percent   ?   ?

Required
Compute the contribution margin per unit and the contribution margin percentage of each basket sold. Do you have enough information to determine which basket should be sold? Show all work.

Textbook

Managerial Accounting: Decision Making and Motivating Performance

Edition: 1^st

Authors: Datar, Rajan

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Managerial Accounting: Decision Making and Motivating Performance
University of Pittsburgh

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7 years ago

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Managerial Accounting: Decision Making and Motivating Performance
University of Pittsburgh

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