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Case Study Question Darius Manufacturing Company manufactures and sells parts for various musical gadgets. The business earned Operating Income of $420,000 in 2018, when selling

Case Study Question

Darius Manufacturing Company manufactures and sells parts for various musical gadgets. The business earned Operating Income of $420,000 in 2018, when selling price per unit was $200 and the president of Darius is under pressure to increase operating income in 2019 and is therefore considering the implementation of strategies geared at increasing revenues. Data for variable cost per unit and total fixed costs were as follows:

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Variable expenses per unit: Direct Material Variable Manufacturing Overhead Fixed expenses: Fixed Manufacturing Overhead $125,000 Fixed Selling Costs $75,000 Fixed Administrative Costs 100,000

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