Question Description

George Corporation has an estimated monthly sales of 10,000 units for $38 per unit. Variable costs include manufacturing costs of $23 and distribution costs of $7. Fixed costs are $40,000 per month. Required: Determine each of the following values. a. Unit contribution margin b. Monthly break-even unit sales volume c. Create a contribution margin-based income statement. (Points : 30) 2. (TCO 7) Darling Manufacturing Inc. manufactures two products, A and B, from a joint process. A single production costs $10,000 and results in 200 units of A and 600 units of B. To be ready for sale, both products must be processed further, incurring seperable costs of $2 per unit for A and $1 per unit for B. The market price for Product A is $30 and for Product B is $25. Required: Allocate joint production costs to each product using the physical units method. (Points : 30)