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Cullumber 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.
Cullumber 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, 2020, Cullumber's break-even point was $1.39 million. On sales of $1.19 million, its income statement showed a gross profit of $202,600, direct materials cost of $407,000, and direct labor costs of $509,000. The contribution margin was $166,600, and variable manufacturing overhead was $49,000. Calculate the following: 1. Variable selling and administrative expenses. 2. Fixed manufacturing overhead. 3. Fixed selling and administrative expenses. eTextbook and Media +A +A Ignore your answer to above part, assume that fixed manufacturing overhead was $100,000 and the fixed selling and administrative expenses were $79,000. The marketing vice president feels that if the company increased its advertising, sales could be increased by 21%. What is the maximum increased advertising cost the company can incur and still report the same income as before the advertising expenditure? Maximum increased advertising expenditure $ eTextbook and Media
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