alejandraterraz2637 alejandraterraz2637

30-01-2020
Business

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Arctic Coolers provides the following information relating to its cooler, Blizzard:Selling Price$60Direct materials35Direct manufacturing labor10Variable manufacturing overhead4Fixed manufacturing overhead5What is the throughput margin for Arctic Coolers for its product, Blizzard?

A. $6
B. $15
C. $11
D. $25

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hyderali230 hyderali230

31-01-2020

Answer:

B. $15

Explanation:

Selling Price$60

Total Variable cost = Direct materials+Direct manufacturing labor+Variable manufacturing overhead

Total Variable cost = 35+10+4

Total Variable cost = 45

Throughput Margin = Sales price - Total Variable cost

Throughput Margin = 60-45

Throughput Margin = $15

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