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:

Amylase

One of a group of starch-splitting enzymes that cleave starch, glycogen, and related polysaccharides.

Maltase

An enzyme that breaks down maltose into glucose, playing a crucial role in the digestive process of carbohydrates.

Carbohydrates

Organic compounds, including sugars, starch, and cellulose, which serve as a major energy source in the diet of animals.

LDL Receptors

Proteins on cell surfaces that bind and internalize low-density lipoprotein (LDL) particles for degradation.