Question
Crane Corporation has collected the following information after its first year of sales. Sales were $1,890,000 on 126,000 units; selling expenses $315,000 (40% variable and
Crane Corporation has collected the following information after its first year of sales. Sales were $1,890,000 on 126,000 units; selling expenses $315,000 (40% variable and 60% fixed); direct materials $643,860; direct labor $365,400; administrative expenses $340,200 (20% variable and 80% fixed); and manufacturing overhead $441,000 (70% variable and 30% fixed). 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 year. Contribution margin for current year is $378,000 for projected year $415800 and the fixed costs for the current year is $593460 break even point in units is 197820 units, what is the break even point in dollars?
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