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Business, 01.04.2021 23:10 neyssa83

Alpha Company makes products A and B. Its contribution margin statement is as follows: A B Total Sales volume (units) 400 600 1,000 Revenue $60,000 $60,000 $120,000 Variable Costs Direct materials $25,000 $15,000 $40,000 Direct labor $15,000 $10,000 $25,000 Contribution Margin $20,000 $35,000 $55,000 Fixed Costs $50,000 Profit $5,000 Alpha allocates its fixed costs (capacity costs) based on direct labor dollars. Compute the allocated fixed costs for product A. Group of answer choices $2.00 $30,000 $50,000 $60,000 $110,000

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