Discussion Post: Managerial Accounting
Fixed and Variable Cost
Stuart Manufacturing produce metals pictures frames. The Company's income statement for the last two years are given below
Last Year This Year
Units Sold 50,000 70,000
Sales $80,000 $1,120,000
Cost of Goods Sold 550,000 710,000
Gross Margin 250,000 410,000
Selling and administrative expense 150,000 190,000
Net Operating Income $100,000 $220,000
The company has no beginning or ending inventories.
Required:
• Estimate the company's total variable cost per unit and its total fixed costs per year. (Remember that this is a manufacturing firm.)
• Compute the company's contribution margin for this year.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.