Question: Please help me with this problem,clearly explaib, thank you P5-GB Mega Electronix carries no inventories. Its product is manufactured only when a customer's order is

Please help me with this problem,clearly explaib, thank you

Please help me with this problem,clearly explaib, thank you P5-GB Mega Electronix

P5-GB Mega Electronix 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 scal year ended October 31, 2014, Mega's breakeven point was $2.4 million. On sales of $2 million, its income statement showed a gross prot of $400,000, direct materials cost of $600,000, and direct labor costs of $700,000. The contribution margin was $150,000, and variable manufacturing overhead was $200,000. Instructions (a) Calculate the following: 1. Variable selling and administrative expenses. 2. Fixed manufacturing overhead. 3. Fixed selling and administrative expenses. (b) Ignoring your answer to part (a), assume that xed manufacturing overhead was $100,000 and the xed selling and administrative expenses were $80,000. The market- ing vice president feels that if the company increased its advertising, sales could be increased by 15%. What is the maximum increased advertising cost the company can incur and still report the same income as before the advertising expenditure? (CGA adapted)

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