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A-D help please. Thank you! Problem 18-5A (Part Level Submission) Viejol Corporation has collected the following information after its first year of sales. Sales were
A-D help please. Thank you!
Problem 18-5A (Part Level Submission) Viejol Corporation has collected the following information after its first year of sales. Sales were $1,250,000 on 125,000 units, selling expenses $250,000 (40% variable and 60% fixed), direct materials $496,000, direct labor $34,900, administrative expenses $280,000 (20% variable and 80% fixed), and manufacturing overhead $358,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year. (a) Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year. (Assume that fixed costs will remain the same in the projected year.) (1) Contribution margin for current year Contribution margin for projected year (2) Fixed Costs $ Click if you would like to Show Work for this question: Open Show Work (B) Compute the break-even point in units and sales dollars for the current year. (Round intermediate calculations to 2 decimal places e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.) (C) The company has a target net income of $200,000. What is the required sales in dollars for the company to meet its target? (Round answer to 0 decimal places, e.g. 1,225.) (D) If the company meets its target net income number, by what percentage could its sales fall before it is operating at a loss? That is what is its margin of safety ratioStep by Step Solution
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