微信扫一扫
实时资讯全掌握
| A company produced and sold 100,000 units of a component with a variable cost of $20 per unit. First quality components have a selling price of $50. The component’s specifications require its weight to be 20 kg. With a tolerance of +1 kg. Unfortunately, 1,200 of the units produced failed the company’s tolerance specifications. These 1,200 units were reworked at a cost of $12 per unit and sold as factory seconds at $45 each. Had the company had a quality assurance program in place such that all units produced conformed to specifications, the increase in the company’s contribution margin from this component would have been A. $21,600 B. $20,400 C. $39,600 D. $14,400 |