What is Munchs expected profit for April? a. $192,500 b. $56,000 c. $66,000 d. $59,000 Munch Enterprises

Question:

What is Munch’s expected profit for April?

a. $192,500

b. $56,000

c. $66,000

d. $59,000 Munch Enterprises makes a small toy car that is voice activated. Projected sales for the next four months areimage text in transcribed

The cars sell for \($35\) each. To produce each car requires \($12.50\) in direct materials and \($6.00\) in direct labour. Fixed overhead costs related to manufacturing the car are \($10,000\) per month, while variable overhead is \($4.50\) per car. Munch normally produces a month's supply of inventory to ensure that it will not fall short in case sales are unexpectedly high. At the end of March, for instance, the company will have inventory to cover April sales.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting For Managers Interpreting Accounting Information For Decision Making

ISBN: 9781118037966

1st Canadian Edition

Authors: Paul M. Collier, Sandy M. Kizan, Eckhard Schumann

Question Posted: