ABC Company has the following data regarding one of its products, which currently sells 10,000...
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Accounting
ABC Company has the following data regarding one of its products, which currently sells 10,000 units annually
Per Unit Price $10
Direct materials $4
Direct labor $2
Variable overhead $1
If per-unit direct materials cost increases by 25%, what will be ABS's new total contribution margin? A. $(30,000) B. $20,000 C. $30,000 D. $40,00
If volume of sales is reduced by 10%, what will be ABC's new total contribution margin? A. $20,000 B. $27,000 C. $30,000 D. $33,000
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