What am I doing wrong? P9-43 (similar to) Exercise Score: 0 of 8 pts Assignment

Question

What am I doing wrong?

P9-43 (similar to) Exercise Score: 0 of 8 pts Assignment Score: 28% (14 of 50 pts) 2 of 7 complete Mercedes Benz of Austin had the following data for the years operations (Click the icon to view the data.) The president of the dealership has long regarded the markup on material and labor for the parts and sevice activity as the amount that is supposed to cover all parts and service overhead plus some general overhead of the dealership. In other words, the parts and service department is viewed as a cost-recovery operation, while the sales of vehicles is viewed as the income-producing activity Read the requirements. Service Vehicies Sales Cost of sales Parts and service materials Parts and service labon Sales commissions Subtotal of costs Markup on variable material and labor* Parts and service overhead Advertising Sales salaries General dealership overhead Net income $900,000 3,100,000 2,200,000 270,000 360,000 630,000 270,000 90,000 90,000 720,000 2,380,000 70,000 92,000

Explanation / Answer

Answer:

Particulars Service Vehicles Sales 900000 3100000 Cost of Sales 2325000 Part and Service materials 270000 Part and service labor 360000 Sales Commissions 155000 Subtotal of costs 630000 2480000 Markup on variable material and labor 270000 620000 Parts and service overhead 90000 Advertising 70000 Sales Salaries 92000 General dealership overhead 180000 150000 Net income 0 308000

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