Question
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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