Carla Vista Corporation has collected the following information after its first year of sales. Sales were...

 

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Carla Vista Corporation has collected the following information after its first year of sales. Sales were $1,770,000 on 118,000 units; selling expenses $295.000 (40 % variable and 60% fixed); direct materials $602,980; direct labor $342,200; administrative expenses $318,600 (20% variable and 80% fixed); and manufacturing overhead $413,000 ( 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. Compute the break-even point in sales units and sales dollars for the first year. (Round contribution margin ratio to 1 decimal place eg. 0.5 and final answers to O decimal places, eg. 2,510) Break-even point Break-even point S units Carla Vista Corporation has collected the following information after its first year of sales. Sales were $1,770,000 on 118,000 units; selling expenses $295.000 (40 % variable and 60% fixed); direct materials $602,980; direct labor $342,200; administrative expenses $318,600 (20% variable and 80% fixed); and manufacturing overhead $413,000 ( 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. Compute the break-even point in sales units and sales dollars for the first year. (Round contribution margin ratio to 1 decimal place eg. 0.5 and final answers to O decimal places, eg. 2,510) Break-even point Break-even point S units

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To compute the breakeven point in sales units and sales dollars for the first year we need to calcul... View the full answer