Hart Company Sold 5,000 Units for a Price of $50

question 93

Multiple Choice

Hart Company sold 5,000 units for a price of $50 per unit and had the following information:If the sales price per unit were to increase by 10%, variable expenses were to increase by 12.5%, and fixed expenses were to increase by 20%, what would be the new contribution margin per unit?

• A) $19.
• B) $21.
• C) $23.
• D) $25.
• E) $32.

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Understand the phenomena leading to the separation of atmospheric layers.

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Definitions:

Predetermined Overhead Rate

An estimated rate used to apply manufacturing overhead to products or job orders, calculated before a period begins based on expected costs and activity levels.

Traditional Costing System

A method of cost accounting that allocates factory overhead to products based on volume-driven measures such as machine hours or labor hours.

Manufacturing Overhead

Consists of all manufacturing costs that are not directly associated with the production of goods, including indirect labor, maintenance, and factory utilities.

Direct Labor-Hours

The compiled working hours of employees directly active in manufacturing tasks.