Question

Panda Toys Inc. plans to sell one line of its panda toys for $20. The material cost per unit is $4 and unit labor cost is $6. The annual overhead fixed costs are $500,000 and the promotion and advertising cost is $100,000. What is the %C of this panda toy line?

Answer 1

The aforementioned statement suggests that this collection of panda toys has a 50% C%.

What does "cost simple" mean?

A company's cost is the amount of money it required to spend to create its services or goods. It's also calculated as the sum that the business spends to create a specific number of a product. Simply put, it is the cash that a business spends on things like labor, goods, agricultural products, and other costs.

Briefing:

%C - Contribution margin %

= ([Selling price (S.P) - Variable cost (v.C)] ÷ Selling price (S.P)

= ($20 - $4 -$6) ÷ $20

= $10 ÷ $20

= 0.5

= 50%

To know more about Cost visit:

https://brainly.com/question/15135554

#SPJ4