Digby Company manufactured and sold 37,000 units of its product at a price of $93 per unit.Total variable cost per unit is $60,consisting of $58 in variable production cost and $2 in variable selling and administrative cost.Fixed costs of manufacturing are $350,000.
a.Compute the manufacturing margin for the company under variable costing.
b.Compute the contribution margin based on this data.
c.Compute the gross margin under absorption costing.

Question

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The Answer of Digby Company manufactured and sold 37,000 units of its product at a price of $93 per unit.Total variable cost per unit is $60,consisting of $58 in variable production cost and $2 in variable selling and administrative cost.Fixed costs of manufacturing are $350,000.
a.Compute the manufacturing margin for the company under variable costing.
b.Compute the contribution margin based on this data.
c.Compute the gross margin under absorption costing.

Digby Company Manufactured and Sold 37,000 Units of Its Product