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The Following Information Pertains to the EWIN Company’s Three Products

question 20

Multiple Choice

The following information pertains to the EWIN Company’s three products:
MNO Unit sales per month 9.00014,0008,00 Selling price per unit $6.00$11.25$7.5 Variable costs per unit 3.009.007.00 Unit contribution margin $3.00$2.25$0.50 Batches 5105 Setups 631 Direct fixed costs  Advertising $3,000$2,000$1,000 Supervision 5,0005,0005,000 Common fired costs \begin{array}{lccc}&\underline{M}&\underline{N}&\underline{O}\\ \text { Unit sales per month } & 9.000 & \underline{14,000} & 8,00 \\ \text { Selling price per unit } & \$ 6.00 & \$ 11.25 & \$ 7.5 \\ \text { Variable costs per unit } & 3.00 & 9.00 & 7 .00 \\ \text { Unit contribution margin } & \$ 3.00 & \$ 2.25 & \$0 .50 \\ \text { Batches } & 5 & 10 &5 \\ \text { Setups } & 6 & 3 &1 \\\\\text { Direct fixed costs }\\\text { Advertising } & \$ 3,000 & \$ 2,000 & \$ 1,000 \\\text { Supervision } & 5,000 & 5,000 & 5,000\\\text { Common fired costs }\end{array}


\begin{array}{lrrr}\end{array}
Inspecting products ($10,000)
Materials handling ($4,000)
Customer service ($5,000)
Plant depreciation ($6,000)
General administration ($8,000)
-Refer to the figure.What would be the product margin for product M using functional-based costing?

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Definitions:

Urban Populations

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