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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Adams Company sells a product for $14. Unit costs are as follows:
Direct materials                            $3.90
Direct labor                             1.40
Variable overhead                   2.10
Variable selling expenses                   1.00
Total fixed overhead is $44,000 per year, and total fixed selling and administrative expenses are $47,280.
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Calculate each of the following:
1.   Variable cost per unit
2.   Contribution margin
3.   Contribution margin ratio
4.   Variable cost ratio
5.   Total fixed cost
6.   Break-even units
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