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Assume that sales revenue and selling and administrative cost numbers in Exhibit 1-6.1 are correct. What, if anything, is wrong with the March 2018 income
Assume that sales revenue and selling and administrative cost numbers in Exhibit 1-6.1 are correct. What, if anything, is wrong with the March 2018 income calculation made for David Gomez showing a profit of about $3,307,304?
Exhibit 1-6.1 Estimated March 2018 Net Income Sales (500 Sedans and 160 Compacts) March Direct Materials March Direct Labour March Actual Overhead (estimated) $ 16,444,000.00 $ 2,205,820.00 $ 2,367,960.00 $ 5,013,600.00 $ 9,587,380.00 Gross Margin Selling and Administration Costs $ 6,856,620.00 $ 2,131,898.73 Income (loss) Before Taxes Taxes at 30% Net Income $ 4,724, 721.27 $ 1,417,416.38 $ 3,307,304.89Step by Step Solution
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