Gogo Inc. produces and sells projectors and has a relevant range between 1,000 units and 2,000...

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Gogo Inc. produces and sells projectors and has a relevant range between 1,000 units and 2,000 units per year. Manufacturing overhead costs range from $1,000,000 to $1,250,000 at the low and high ends of the relevant range, respectively. All Gogo's products are customized, so it does not keep any inventory. Gogo's income tax rate is 25%. The following is Gogo's sales and costs information for the month of June: Sales Sales units Direct materials Direct labour Manufacturing Overhead Variable Operating Expenses Earnings after taxes $3,000,000 1,500 $240,000 $600,000 ? 9.5% of Sales $150,000 Using the high-low method, calculate: Please round your calculations to the nearest dollar. (a) the fixed manufacturing overhead cost: $ (b) the unit variable manufacturing overhead cost: $ (c) the total manufacturing overhead cost for 1,500 units: $ (d) the contribution margin: % (e) the gross margin: % (f)the total period costs (operating expenses): $ (g) the fixed period costs (operating expenses): $ (h) the total fixed costs (including both fixed product and fixed period cost): $ Based on the above answers, calculate (i) the break-even point in units: units (i) the degree of operating leverage: (k) the margin of safety in units: units (1) the sales dollars needed to earn income after taxes of $210,000: $ (m) sales dollars required to yield an after-tax profit of 7.5% of sales: $ Gogo Inc. produces and sells projectors and has a relevant range between 1,000 units and 2,000 units per year. Manufacturing overhead costs range from $1,000,000 to $1,250,000 at the low and high ends of the relevant range, respectively. All Gogo's products are customized, so it does not keep any inventory. Gogo's income tax rate is 25%. The following is Gogo's sales and costs information for the month of June: Sales Sales units Direct materials Direct labour Manufacturing Overhead Variable Operating Expenses Earnings after taxes $3,000,000 1,500 $240,000 $600,000 ? 9.5% of Sales $150,000 Using the high-low method, calculate: Please round your calculations to the nearest dollar. (a) the fixed manufacturing overhead cost: $ (b) the unit variable manufacturing overhead cost: $ (c) the total manufacturing overhead cost for 1,500 units: $ (d) the contribution margin: % (e) the gross margin: % (f)the total period costs (operating expenses): $ (g) the fixed period costs (operating expenses): $ (h) the total fixed costs (including both fixed product and fixed period cost): $ Based on the above answers, calculate (i) the break-even point in units: units (i) the degree of operating leverage: (k) the margin of safety in units: units (1) the sales dollars needed to earn income after taxes of $210,000: $ (m) sales dollars required to yield an after-tax profit of 7.5% of sales: $

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answer To calculate the fixed manufacturing overhead cost and the unit variable manufacturing overhead cost using the highlow method we need to find the variable cost per unit and the total fixed cost ... View the full answer