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 are
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.
Step by Step Answer:
Accounting For Managers Interpreting Accounting Information For Decision Making
ISBN: 9781118037966
1st Canadian Edition
Authors: Paul M. Collier, Sandy M. Kizan, Eckhard Schumann