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Can you please check my numbers and tell if what I did wrong? Cullumber Corporation has collected the following information after its rst year of
Can you please check my numbers and tell if what I did wrong?
Cullumber Corporation has collected the following information after its rst year of sales. Sales were $2,000,000 on 100,000 units, selling expenses $210,000 (40% variable and 60% xed], direct mate rials $498,000, direct labor $600,200, administrative expenses $280,000 {20% variable and 80% xed}, and manufactu ring overhead $3 ?4,000 {?0% variable and 30% xed}. 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 yeah (a) Compute {1) the contribution margin for the cu rrent year and the projected year, and [2] the xed costs for the current yea r. [Assu me that xed costs will remain the same in the projected year.) [1} Contribution m argi n for cu rrent year $ 500000 Contribution margin for projected year 55 550000 [2} Fixed Costs $ 45mm eTextbook and Media Assistance UsedStep by Step Solution
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