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Bueno Company Provided the Following Information Regarding Its One and Only

question 14

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Bueno Company provided the following information regarding its one and only product-ice skates.  Direct materials used $200,000 Direct labor 80,000 Fixed overhead 100,000 Fixed s elling and administrative costs 150,000 Variable overhe ad 20,000 Variable selling and administrative 60,000 Selling unit price 75 Units produced and sold 10,000\begin{array}{ll}\text { Direct materials used } & \$ 200,000 \\\text { Direct labor } & 80,000 \\\text { Fixed overhead } & 100,000 \\\text { Fixed s elling and administrative costs } & 150,000 \\\text { Variable overhe ad } & 20,000 \\\text { Variable selling and administrative } & 60,000 \\\text { Selling unit price } & 75 \\\text { Units produced and sold } & 10,000\end{array} is the manufacturing cost per unit if the absorption approach is used.

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Definitions:

Voluntary Marketing Exchange

Transactions where both the buyer and seller willingly engage in the trade of goods or services, each expecting to benefit from the exchange.

Product

Any item or service offered by a firm that meets a need or desire of consumers.

Private-Label Brands

Brands developed and marketed by a retailer and available only from that retailer; also called store brands.

Big-Box Stores

Large retail establishments that offer a wide variety of merchandise under one roof, typically at lower prices.

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