Guthrie Industries manufactures and sells dog collars. The collars sell for $12 each. Information about the...
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Guthrie Industries manufactures and sells dog collars. The collars sell for $12 each. Information about the company's costs is as follows. Variable manufacturing cost per unit Variable selling and administrative cost per unit Fixed manufacturing overhead per month Fixed selling and administrative cost per month 2 1 $ 250,000 200,000 a. Determine the company's monthly break-even point in units. b. Determine the sales volume (in dollars) required for a monthly operating income of $900,000. c. Compute the company's margin of safety if its current monthly sales level is $1,400,000. d. Estimate the amount by which monthly operating income will increase if Guthrie anticipates a $60,000 increase in monthly sales volume. a. Break-even point units b. Sales revenue c. Margin of safety d. Increase in operating income Guthrie Industries manufactures and sells dog collars. The collars sell for $12 each. Information about the company's costs is as follows. Variable manufacturing cost per unit Variable selling and administrative cost per unit Fixed manufacturing overhead per month Fixed selling and administrative cost per month 2 1 $ 250,000 200,000 a. Determine the company's monthly break-even point in units. b. Determine the sales volume (in dollars) required for a monthly operating income of $900,000. c. Compute the company's margin of safety if its current monthly sales level is $1,400,000. d. Estimate the amount by which monthly operating income will increase if Guthrie anticipates a $60,000 increase in monthly sales volume. a. Break-even point units b. Sales revenue c. Margin of safety d. Increase in operating income
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Selling Price Total Variable cost Per unit 21 Total Fixed cost 2500002... View the full answer
Related Book For
Accounting What the Numbers Mean
ISBN: 978-0073527062
9th Edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
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