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1. What were the variable selling and administrative expenses for July? 2. What were the fixed selling and administrative expenses for July? 3. What was

1.

What were the variable selling and administrative expenses for July?

2.

What were the fixed selling and administrative expenses for July?

3.

What was the cost of goods sold during July?

4.

Without prejudice to your earlier answers, assume that the fixed selling and administrative expenses for July amounted to $6,250.

a. What was the break-even point in units for July?

b. How many units must be sold to earn a target operating income of

$17,600?

c. What would the selling price per unit have to be if the company wanted to earn an operating income of $62,650 on the sale of 910 units?

Sales

$130,000

Direct materials used

35,000

Direct labor

11,000

Variable manufacturing overhead

18,000

Fixed manufacturing overhead

13,000

Variable selling and administratve expenses

?

Fixed selling and administrative expenses

?

Contribution margin

55,000

Operating income

33,000

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