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all 1 problem Linden Company manufactures and sells a single product. Cost data for the product based on a production and sales level of 30,000
all 1 problem
Linden Company manufactures and sells a single product. Cost data for the product based on a production and sales level of 30,000 units during the month of March 2022 follow: $ 1,440,000 Sales Manufacturing Costs Direct Materials Direct Labor Variable Factory Overhead Fixed Factory Overhead Total manufacturing for the month 150,000 300,000 90,000 320,000 860,000 $ Non-manufacturing Costs Variable selling and administrative Fixed selling and administrative Total non-manufacturing costs for the month $ 120,000 200,000 $ 320,000 REQUIRED: Complete the following table: Compute the break-even point in units for March Compute the break-even point in sales dollars for March Compute the company's margin of safety in dollars for March Compute the company's margin of safety as a percentage (to two decimal places) for March Compute the break-even point in units for March Compute the break-even point in sales dollars for March Compute the company's margin of safety in dollars for March Compute the company's margin of safety as a percentage (to two decimal places) for March The manager believes that due to good economic conditions, if the selling price is reduced by 10%, unit sales will increase by 30% in April (from March). Should the manager proceed with this decision Complete the table to show calculations JULY (with JUNE proposed CHANGE changes) Unit sales 30000 Selling Price per unit Sales Total Variable costs Contribution Margin Total Fixed Costs Net Operating Income Should the manager proceed with the decision? Why? Using the proposed changes by the manager, compute the new break-even point in units Using the proposed chnages by the manager, compute the new break-even point in sales dollars Step by Step Solution
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