Stuart Manufacturing produces metal picture frames.The company's income statements for the last two years are presented below:

The company has no beginning or ending inventories.

Required:

a. Estimate the company's total variable cost per unit, and its total fixed costs per year. (Remember that this is a manufacturing firm.)
b. Compute the company's contribution margin for this year.

Question

Stuart Manufacturing produces metal picture frames.The company's income statements for the last two years are presented below:

The company has no beginning or ending inventories.

Required:

a. Estimate the company's total variable cost per unit, and its total fixed costs per year. (Remember that this is a manufacturing firm.)
b. Compute the company's contribution margin for this year.

Quizplus · Accepted Answer

The Answer of Stuart Manufacturing produces metal picture frames.The company's income statements for the last two years are presented below:

The company has no beginning or ending inventories.

Required:

a. Estimate the company's total variable cost per unit, and its total fixed costs per year. (Remember that this is a manufacturing firm.)
b. Compute the company's contribution margin for this year.

Stuart Manufacturing Produces Metal Picture Frames