Ludington Corporation Provides the Following Data from a Recent Period

question 196

Essay

Ludington Corporation provides the following data from a recent period for its manufacture of shoes: direct material costs,$24,000; direct labor costs,$12,000; and total fixed costs,$40,000.Sales were $60,000 based on 12,000 units sold during the period.Calculate the contribution margin and the contribution margin ratio.

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Definitions:

Tidal Volume

The amount of air that is inhaled or exhaled during normal breaths at rest.

Lung Cancer

A type of cancer characterized by the uncontrolled growth of abnormal cells in the lungs, often caused by smoking.

Asbestos

A group of naturally occurring fibrous minerals used in building materials, but known to cause lung diseases when inhaled.