Direct labor cost per unit part 1 2637 total

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Direct labor cost per unit (part 1) $26.37 Total manufacturing cost per unit Selling price per unit Total manufacturing cost per unit Gross profit per unit 4. Product A Product B Gross profit per unit (from above) $15.00 $24.00 x units per customer (part 2) 10,000 2,000 Gross profit per customer 150,000 48,000 3
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LirianoAU04a2 Gross profit per customer 150,000 48,000 - Service cost per customer (part 2) $43.20 $15.00 Profit (loss) per customer $149,956.80 $47,985 Analysis: Product A’s profit per customer is significantly larger than that of Product B. The $101,971.00 difference can be attributed to Product A’s large number of customers. In this same way, the profit loss per customer is also substantially higher for Product A than B. 5. Because of the focus that it creates on overhead costs the ABC method is the ideal tool for managers to get a clear picture of the company’s progress. The company in this example would best be analyzed with this system and its managers would be able to get superlative information to make necessary decisions for the business. 4
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LirianoAU04a2 References Capella University (Ed.). (2014). BUS4061: Managerial accounting principles [Custom text]. Boston, MA: McGraw-Hill Create. ISBN: 9781308231648. 5
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