1.Ricardo Ltd makes doors with a selling price of £50 per door. Budgeted production and sales volume is 1,000 doors per month. During August 1,000 doors were made and 800 doors were sold. There was no opening inventory. The variable cost per door is £25. Fixed costs in August were, as budgeted, £5,000. Using absorption costing, what is the profit for August? £20,000 £16,000 £15,000 4. £10,000

1.Ricardo Ltd makes doors with a selling price of £50 per door. Budgeted production and sales volume is 1,000 doors per month. During August 1,000 doors were made and 800 doors were sold. There was no opening inventory. The variable cost per door is £25. Fixed costs in August were, as budgeted, £5,000. Using absorption costing, what is the profit for August? £20,000 £16,000 £15,000 4. £10,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5EA: Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of...

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