Pharoah Industries carries no inventories. Its product is manufactured only when a customer's order is received....
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Pharoah Industries carries no inventories. Its product is manufactured only when a customer's order is received. It is then shipped immediately after it is made. For its fiscal year ended October 31, 2020, Pharoah's break-even point was $1.38 million. On sales of $1.19 million, its income statement showed a gross profit of $178,800, direct materials cost of $405,000, and direct labor costs of $503,000. The contribution margin was $142,800, and variable manufacturing overhead was $51,000. Your Answer Correct Answer (Used) - Your answer is partially correct. Calculate the following: 1. 88200 2. 165600 3. $ 113400 e Textbook and Media Solution Attempts: 3 of 3 used Your answer is incorrect. Ignore your answer to above part, assume that fixed manufacturing overhead was $100,000 and the fixed selling and administrative expenses were $82,000. The marketing vice president feels that if the company increased its advertising, sales could be increased by 19%. What is the maximum increased advertising cost the company can incur and still report the same income as before the advertising expenditure? Maximum increased advertising expenditure $ (b) Variable selling and administrative expenses. Fixed manufacturing overhead. Fixed selling and administrative expenses. $ 10 $ Pharoah Industries carries no inventories. Its product is manufactured only when a customer's order is received. It is then shipped immediately after it is made. For its fiscal year ended October 31, 2020, Pharoah's break-even point was $1.38 million. On sales of $1.19 million, its income statement showed a gross profit of $178,800, direct materials cost of $405,000, and direct labor costs of $503,000. The contribution margin was $142,800, and variable manufacturing overhead was $51,000. Your Answer Correct Answer (Used) - Your answer is partially correct. Calculate the following: 1. 88200 2. 165600 3. $ 113400 e Textbook and Media Solution Attempts: 3 of 3 used Your answer is incorrect. Ignore your answer to above part, assume that fixed manufacturing overhead was $100,000 and the fixed selling and administrative expenses were $82,000. The marketing vice president feels that if the company increased its advertising, sales could be increased by 19%. What is the maximum increased advertising cost the company can incur and still report the same income as before the advertising expenditure? Maximum increased advertising expenditure $ (b) Variable selling and administrative expenses. Fixed manufacturing overhead. Fixed selling and administrative expenses. $ 10 $
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Sales DL DM Variable MO Fixed MO Gross Profit 1190000 ... View the full answer
Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-0470477144
5th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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