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When should the fixed OH cost need to deduct from the selling price ?
Sales price $30/unit
Direct materials $10/unit
Direct labour $5/unit
Variable production overheads $2/unit
Fixed overheads $300
Sales volume 100unit*****This is due to the requirement ?
If profit using MC then we should need to deduct Fixed OH from selling price
{[30-(10+5+2)]*100}-300=1000
If the requirement wants contribution using MC we no need to deduct FOH from selling price ?
{[30-(10+5+2)]*100=1300
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