tion has collected the follow ng information after its st yearof sales ales were
ID: 2523117 • Letter: T
Question
tion has collected the follow ng information after its st yearof sales ales were 1,200,000 100 000 units, selling expenses $210,000 40% riable and 80% fixed), and manufacturing variable and 60% fixed), direct materials $492,000, direct labor $21,000, overhead $354,000 70% variable and 30% fixed Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year. administrative expenses $276,000 (20% va (1) the for the cu same in the projected year.) (1) Contribution margin for current years Contribution margin for projected year (2) Fixed Costs LINK TO TEXT LINK TO TEXT LINK TO TEXT units and sales dollars for the current year. (Round intermediate calculations to 2 decimal places e.g. 2.25 and final answers to O decimal places, e.g. 1,225.) Break-even point in units Break-even point in dolilarss unitsExplanation / Answer
1. contribution margin
2. Fixed costs
Manufacturing 30%=$106200
Administration 80%=$220800
Selling expenses 40%=$126000
Total =$453000
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Particulars at 100000 units (current year) at 110000 units (projeced year) (10% increase) Sales 1200000 1320000 Direct material 492000 541200 Direct Labour 21000 23100 Variable expenses Manufacturing 70% 247800 272580 Administration 20% 55200 60720 Selling 40% 84000 92400 contribution 300000 330000Related Questions
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