The Auto Supply manufactures memory cards that sell to wholesalers for $2 00 each Variable and fixed costs are as follows Variable Costs per card Fixed Costs per Month Factory overhead $7,000 Direct materials $0 30 Selling and admin 3,000 Direct labor 0 25 Factory overhead 0 25 total $0 80 Selling ...

a Sales 2 x 10000 For the Month Ending October 31 2018 Less vari ...

The Auto Supply manufactures memory cards that sell to wholesalers for $2.00 each. Variable and fixed costs

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The Auto Supply manufactures memory cards that sell to wholesalers for $2.00 each. Variable and fixed costs are as follows:

Variable Costs per card:		Fixed Costs per Month:
		Factory overhead	$7,000
Direct materials	$0.30	Selling and admin.	3,000
Direct labor	0.25
Factory overhead	0.25
total	$0.80
Selling and admin.	0.15
Total	$0.95	Total	$10,000

Required

a) Prepare an income statement of contributions corresponding to the month of October.

b) Determine Auto Supply's monthly breakeven point in units.

c) Determine the effect on monthly profit of an increase of 1,000 units in monthly sales.

Related Book For answer-question

Management Accounting

ISBN: 978-0132570848

6th Canadian edition

Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu

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Posted Date: Apr 27, 2023 07:32 AM

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The Auto Supply manufactures memory cards that sell to wholesalers for $2.00 each. Variable and fixed costs

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Management Accounting

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