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2. Naumann Corporation produces and sells a single product. Data concerning that product appear below: Percent of Sales 100% 20% Per Unit $ 250 50
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Naumann Corporation produces and sells a single product. Data concerning that product appear below: Percent of Sales 100% 20% Per Unit $ 250 50 Selling price Variable expenses Contribution margin $ 200 80% Fixed expenses are $170,000 per month. The company is currently selling 1,200 units per month. Required: Management is considering using a new component that would increase the unit variable cost by $66. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 500 units. What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected? (Negative amounts should be indicated by a minus sign.) Change in net operating income Uchimura Corporation has two divisions: the AFE Division and the GBI Division. The corporation's net operating income is $11,700. The AFE Division's divisional segment margin is $81,100 and the GBI Division's divisional segment margin is $46,300. What is the amount of the common fixed expense not traceable to the individual divisions? Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 154 Units in beginning inventory Units produced Units sold Units in ending inventory 2,080 1,260 820 $ $ 56 35 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $ 10 $22,880 $34,020 What is the total period cost for the month under variable costingStep by Step Solution
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