Viejol Corporation has collected the following information after its first year of sales. Sales were $1,600,000...
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Viejol Corporation has collected the following information after its first year of sales. Sales were $1,600,000 on 100,000 units, selling expenses $250,000 (40% variable and 60% fixed), direct materials $490,000, direct labor $290,000, administrative expenses $270,000 (20% variable and 80% fixed), and manufacturing overhead $380,000 (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. (a) Your Answer - Correct Answer Your answer is partially correct. Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year. (Assume that fixed costs will remain the same in the projected year.) (1) Contribution margin for current year $ 400000 Contribution margin for projected year $ 560000 (2) Fixed Costs eTextbook and Media Solution +A $ 480000 Attempts: 3 of 3 used (b) Compute the break-even point in units and sales dollars for the current year. (Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 125.) Break-even point in units Break-even point in dollars $ units Viejol Corporation has collected the following information after its first year of sales. Sales were $1,600,000 on 100,000 units, selling expenses $250,000 (40% variable and 60% fixed), direct materials $490,000, direct labor $290,000, administrative expenses $270,000 (20% variable and 80% fixed), and manufacturing overhead $380,000 (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. (a) Your Answer - Correct Answer Your answer is partially correct. Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year. (Assume that fixed costs will remain the same in the projected year.) (1) Contribution margin for current year $ 400000 Contribution margin for projected year $ 560000 (2) Fixed Costs eTextbook and Media Solution +A $ 480000 Attempts: 3 of 3 used (b) Compute the break-even point in units and sales dollars for the current year. (Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 125.) Break-even point in units Break-even point in dollars $ units
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Answer a Contribution Margin and Fixed Costs Contribution Margin for the Current Year Contribution M... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1119419617
IFRS global edition
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt
Posted Date:
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