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1. The Valdez Mug Company manufactures plastic mugs that sell to wholesalers for $4.00 each....

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Accounting

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1. The Valdez Mug Company manufactures plastic mugs that sell to wholesalers for $4.00 each. Variable and fixed costs are as follows: Fixed Costs per Month Variable Costs per Unit Manufacturing: Direct materials Direct labor Factory OH $0.60 0.70 0.50 Factory Overhead Selling & Admin $ 8.000 6,000 $1.80 $14.000 Selling and admin. Total 0.40 S2.20 Valdez Mug produced and sold 10,000 cups during April 2001. There were no beginning or ending inventories. Required: a. What is Valdez Mug's contribution margin per plastic mug? b. How many plastic mugs would Valdez have to sell to breakeven in a given month

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