Kanban Company estimated sales of 40,000 units at $6 each. Budgeted cost of goods sold per...

 

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Kanban Company estimated sales of 40,000 units at $6 each. Budgeted cost of goods sold per unit includes $1.20 of direct materials, six minutes of direct labor time at $15 per hour, and unit overhead cost of $1.30. Kanban pays a sales commission of 10% of sales revenue. Fixed selling and administrative expenses are budgeted at $25,000. Prepare a statement of operating income. ABC A. B. C. Budgeted variable marketing expense is Budgeted operating income is Recalculate budgeted operating income assuming fixed selling and administrative expenses double and the selling price per unit increases 10%. Kanban Company estimated sales of 40,000 units at $6 each. Budgeted cost of goods sold per unit includes $1.20 of direct materials, six minutes of direct labor time at $15 per hour, and unit overhead cost of $1.30. Kanban pays a sales commission of 10% of sales revenue. Fixed selling and administrative expenses are budgeted at $25,000. Prepare a statement of operating income. ABC A. B. C. Budgeted variable marketing expense is Budgeted operating income is Recalculate budgeted operating income assuming fixed selling and administrative expenses double and the selling price per unit increases 10%.

Answer rating: 100% (QA)

Total Sales Revenue Units Sold Selling Price per Unit COGS per Unit Direct Material Cost per Unit Di... View the full answer