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Business, 14.04.2020 21:04 mchillery1028
Riddell Company manufactures one type of basketball. Each basketball is sold for $55 and the individual contribution margin is $27. Total fixed costs are $185,000 annually. Included in fixed costs are two production supervisor’s salaries of $96,000. Management estimates that production supervisors can effectively oversee the production of 6,000 basketballs. After that, an additional production supervisor needs to be hired.
Production supervisor’s salaries are a:
a. Variable cost
b. Mixed cost
c. Opportunity cost
d. Step cost
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Riddell Company manufactures one type of basketball. Each basketball is sold for $55 and the individ...
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