Crane Corporation has collected the following information after its first year of operations. Sales were $1,600,000...

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Crane Corporation has collected the following information after its first year of operations. Sales were $1,600,000 on 100,000 units, selling expenses $220,000 (40% variable and 60% fixed), direct materials $504,000, direct labor $306,000, administrative expenses $278,000 (20% variable and 80% fixed), and manufacturing overhead $352,000 (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) Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year and the projected year. Unit selling price, unit variable costs, and fixed costs are estimated to remain unchanged. (1) Contribution margin for current year $ Contribution margin for projected year $ (2) Total fixed costs $ Crane Corporation has collected the following information after its first year of operations. Sales were $1,600,000 on 100,000 units, selling expenses $220,000 (40% variable and 60% fixed), direct materials $504,000, direct labor $306,000, administrative expenses $278,000 (20% variable and 80% fixed), and manufacturing overhead $352,000 (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) Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year and the projected year. Unit selling price, unit variable costs, and fixed costs are estimated to remain unchanged. (1) Contribution margin for current year $ Contribution margin for projected year $ (2) Total fixed costs $

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Answer Crane Corporation CVP Analysis a Contribution Margin and Fixed Costs 1 Contribution Margin To ... View the full answer