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Blossom Industries carries no inventories. Its product is manufactured only when a customer's order is received. It is then shipped immediately after it is made.

Blossom Industries carries no inventories. Its product is manufactured only when a customer's order is received. It is then shipped
immediately after it is made. For its fiscal year ended October 31,2025, Blossom's break-even point was $1.39 million. On sales of
$1.50 million, its GAAP income statement showed a gross profit of $242,500, direct materials cost of $506,000, and
dIgnoring your answer to above part, assume that fixed manufacturing overhead was $102,000 and the fixed selling and
administrative expenses were $76,000. The marketing vice president feels that if the company increased its advertising, sales
could be increased by 19%. What is the maximum increased advertising cost the company can incur and still report the same
income as before the advertising expenditure, assuming that the contribution margin ratio remains unchanged?
Maximum increased advertising expenditure $irect labor costs of $634,000. The contribution margin was $180,000, and variable
manufacturing overhead was $50,000.
Calculate the following:
1. Variable selling and administrative expenses. $
2. Fixed manufacturing overhead. $
3. Fixed selling and administrative expenses. $
130000
67500
99300
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