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Nevada Company provided the following information regarding its only product: skateboards. (No inventories at beginning or end of year)Direct materials used $200,000Direct labor $80,000Fixed overhead $180,000Fixed selling and administrative costs $150,000Variable overhead $30,000Variable selling and administrative $60,000Selling unit price $120
Units produced and sold 10,000
(1) What is the total gross profit margin (gross profit) for this product?(2) What is the total gross profit margin in dollars per unit?(3) Calculate the contribution margin in total dollars(4) Calculate the contribution dollars per unit(5) Given the information, based on a numeric test only (ignoring qualitative issues) and assuming you had extra capacity, would you accept a special order at $75 per unit?
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