enovO Kimmel, Acceanting, Ge r\" iS SA ( Part Viejol Corporation h year. I, has

Question

enovO Kimmel, Acceanting, Ge r" iS SA ( Part Viejol Corporation h year. I, has pro ted that una sales will ncrease by 10% next year. Idi n ear of sales. Sales were $1,000,000 on 100, 00 wits. selingexpenses S250,00 40% variable andeesteed nd e str died mater als SS GOO dret labor Sassae tode aap analysis that it can make plans for the coming | (a) rYour answer is correct Compute (1) the contrbution margin for the curent year and the projected vear, and (2) the fxed cots for the curent year. (Assume thst fixed costs will remain the same 1) Contribution margin for current year Contribution margin for projected year (2) Fixed Costs ike to Show Work for this question: Open Show Work (b) Comp e the break-even decimal places e- 2.25 and final answers to decimal places, e.g. 1.223 units and sales enars for the current year. (m und point in ur Break-even point in delars Clikk if you would like to i show Work for this questions 9son Show

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Current Year Projected Year Sales        1,600,000.00        1,760,000.00 Variable Costs: Selling expenses = 250000*.40            100,000.00            110,000.00 Direct Materials            510,000.00            561,000.00 Direct Labour            288,200.00            317,020.00 Administartive expenses = 284000*.20              56,800.00              62,480.00 Manufacturing overhead = 350000*.70            245,000.00            269,500.00 Total Variable costs        1,200,000.00        1,320,000.00 Contribution = sales - Variable costs            400,000.00            440,000.00 Fixed costs: Selling expenses = 250000*.60            150,000.00            150,000.00 Administartive expenses = 284000*.80            227,200.00            227,200.00 Manufacturing overhead = 350000*.30            105,000.00            105,000.00 Total fixed costs            482,200.00            482,200.00 Income            (82,200.00)            (42,200.00) CM per unit = 400,000/100,000                         4.00 CM Ratio = 400,000/1600,000 25.00% BEP in $ = 482,200/25%        1,928,800.00 BEP in Units = 482,200/4            120,550.00

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