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34) XTREME BILLIARDS BUDGET PROBLEM: Xtreme Billards manufactures pool tables. Below are Xtreme Billiards' actual 2021 results. Where applicable, the 2021 per unit revenues and
34)
XTREME BILLIARDS BUDGET PROBLEM: Xtreme Billards manufactures pool tables. Below are Xtreme Billiards' actual 2021 results. Where applicable, the 2021 per unit revenues and costs are shown in parentheses. Assume that materials costs are expected in increase by 6% and labor costs are expected to increase by 10% in 2022. All other costs are expected to increase by 5%. Xtreme Billiards' 2022 tax rate is expected to be -25%. The company expects to increase its selling prices by 5% in 2022 and expects to produce and sell 25.000 pool tables in 2022. 2022 2021 ACTUAL Performance $44,000,000 BUDGETED Performance Sales Revenue ($2,000 per table in 2021) Variable costs Direct Materials ($450 per table in 2021) Direct Labor ($850 per table in 2021) Fixed Costs 9.900,000 18,700,000 Indirect Labor Advertising & Other Miscellaneous Income Taxes 4,300,000 4.525,000 1,645,000 ??? LEILA Hivi Shan! Attempt 1 4,300,000 Indirect Labor Advertising & Other Miscellaneous Income Taxes Profit What is the budgeted Income Taxes cost for 2022? 4,525,000 1,645,000 ??? $4,930,000 $1,727,250 $1,929,688 $1,657,300 O $2,105,250 G Step by Step Solution
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