Clementine Productions is a new business in the industry. They are currently producing guitar and flutes and are planning to add violins in their instruments. Based on the study conducted, the following are cost data related to the creation of two types of violins. Type 1 ($) Type 2 ($) Direct Materials 110 per unit 170 per unit Direct Labor 170 per unit 40 per unit Fixed factory overhead 1,600 4,797 Variable factory overhead 14 per unit 62 per unit Variable selling expense 7 per unit 11 per unit Compute for the number of guitar sales which would give Clementine the same operating income when they choose either of the types detailed above.

Clementine Productions is a new business in the industry. They are currently producing guitar and flutes and are planning to add violins in their instruments. Based on the study conducted, the...

Clementine Productions is a new business in the industry. They are currently producing guitar and flutes and are planning to add violins in their instruments. Based on the study conducted, the following are cost data related to the creation of two types of violins.

	Type 1 ($)	Type 2 ($)
Direct Materials	110 per unit	170 per unit
Direct Labor	170 per unit	40 per unit
Fixed factory overhead	1,600	4,797
Variable factory overhead	14 per unit	62 per unit
Variable selling expense	7 per unit	11 per unit

Compute for the number of guitar sales which would give Clementine the same operating income when they choose either of the types detailed above.

Jun 09, 2022

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Clementine Productions is a new business in the industry. They are currently producing guitar and flutes and are planning to add violins in their instruments. Based on the study conducted, the...

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