13 Egret Corporation is a wholesale that sells a single product and maintains a stable cost structure Management has provided the following data for two months 3 Sales revenue Gross margin Net operating income (Loss). Selling price per unit June 1,155,000 854,700 422,700 165 May 577,500 $ 364,700 S (39,300) S 165 S CM 854 -5 >$ 5 CMR = 0.7L Suppose the price remains the same. The best estimate of the margin of safety in July at the sales volume below is: Sales volume in July: 6,500 units BE in $ = 432,000 S 1,072,500 B S 866,250 Sales 0.74 C S 626,625 ve D $ 445,875 Zero 432.000 FO $422,700 NU Mos 571,216.3 June Sales 1.155,000 300,300 UM $54,700 Name : if sales increases tun Mu IT Sales dues cases decreases and Hos MO) = 75 - 80 Mos = 1,155,000 - 583,783.7 Forgive of BC in g = 583,783.78 Pretine 14 Bravo Corporation uses direct labor-hours to allocate their manufactuing overhead cost with capacity-based method. At the end of year, they attribute the under over-applied manufacuturing overhead entirely to cost of goods sold. They find that they need to debit cost of goods sold by $25,500 for this adjustment. The estimated manufacturing overhead at capacity must have been: 15700 13200 Estimate direct labor hours Estimated direct labor hours at capacity Actual manufacturing overhead Actual direct labor hours $283,800 12300 5 331,932 5 277,200 5 329,700 D 5 394,798 E None of the above PMOHR = 283,800 13,00 PMOHR = 21650 This is the change 0.50* 13,200 - 6,600 6,600 283,500 2 2 Page 7 of 10 = 27,200