Fixed marketing and administrative costs


Seattle Enterprises produces packaged fresh meals that sell for $10 each. During the current month, Seattle produced 2,800 meals, but only sold 2,700 meals. The variable cost per meal was $6 and the sales commissions per meal were $1. Total fixed manufacturing costs were $1,400 and total fixed marketing and administrative costs were $1,200. Gross profit under absorption costing would be:

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Accounting Basics: Fixed marketing and administrative costs
Reference No:- TGS069136

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