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6 September, 21:58

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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Answers (1)
  1. 6 September, 22:17
    0
    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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