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Part 1:
Given the following info(daily basis)on a manufacturing company, calculate the following:
a) contribution margin on a per unit basis
b) contribution margin on a total dollar basis
c) fixed costs
average selling price for manufacturer's product=$5.00
daily break- even level(units)=10,000
variable cost per unit=$0.50
Part 2:
Assume that the variable cost per unit in the previous problem=standard cost per unit and that daily break-even level of units=amount actually purchased. If the actual cost per unit at the time of purchase increases 10%, what is the variance for total variable cost? Is financial impact positive or negative?
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