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Asked by Michelle Chrisette on Jul 22, 2024

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The total gross margin for the month under the absorption costing approach is:

A) $149,600
B) $10,200
C) $115,400
D) $91,800

Gross Margin

The difference between sales revenue and cost of goods sold, expressed as a percentage of sales revenue, indicating the financial health and profitability of a business.

Absorption Costing

An approach to costing that encompasses all costs associated with manufacturing, including direct materials, direct labor, as well as variable and fixed manufacturing overheads, in the product cost.

  • Recognize the variances between absorption costing and variable costing, and how they influence operating income.
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Nurul SyahirahJul 24, 2024
Final Answer :
D
Explanation :
Unit product cost under absorption costing: Unit product cost under absorption costing: Reference: CHO7-Ref34 McCoy Corporation manufactures a computer monitor.Shown below is McCoy's cost structure: In its first year of operations, McCoy produced 100,000 monitors but only sold 95,000.McCoy's gross margin in this first year was $2,629,600.McCoy's contribution margin in this first year was $2,109,000. Unit product cost under absorption costing: Reference: CHO7-Ref34 McCoy Corporation manufactures a computer monitor.Shown below is McCoy's cost structure: In its first year of operations, McCoy produced 100,000 monitors but only sold 95,000.McCoy's gross margin in this first year was $2,629,600.McCoy's contribution margin in this first year was $2,109,000. Reference: CHO7-Ref34
McCoy Corporation manufactures a computer monitor.Shown below is McCoy's cost structure: Unit product cost under absorption costing: Reference: CHO7-Ref34 McCoy Corporation manufactures a computer monitor.Shown below is McCoy's cost structure: In its first year of operations, McCoy produced 100,000 monitors but only sold 95,000.McCoy's gross margin in this first year was $2,629,600.McCoy's contribution margin in this first year was $2,109,000. In its first year of operations, McCoy produced 100,000 monitors but only sold 95,000.McCoy's gross margin in this first year was $2,629,600.McCoy's contribution margin in this first year was $2,109,000.

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