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Gogo Inc. produces and sells projectors and has a relevant range between 1,000 units and 2,000 units per year. Manufacturing overhead costs range from $1,000,000

Gogo Inc. produces and sells projectors and has a relevant range between 1,000 units and 2,000 units per year. Manufacturing overhead costs range from $1,000,000 to $1,250,000 at the low and high ends of the relevant range, respectively. All Gogos products are customized, so it does not keep any inventory. Gogos income tax rate is 25%. The following is Gogos sales and costs information for the month of June:

Sales $3,000,000
Sales units 1,500
Direct materials $240,000
Direct labour $600,000
Manufacturing Overhead ?
Variable Operating Expenses 9.5% of Sales
Earnings after taxes $150,000

Using the high-low method, calculate:

Please round your calculations to the nearest dollar.

(a) the fixed manufacturing overhead cost: $

(b) the unit variable manufacturing overhead cost: $

(c) the total manufacturing overhead cost for 1,500 units: $

(d) the contribution margin: %

(e) the gross margin: %

(f)the total period costs (operating expenses): $

(g) the fixed period costs (operating expenses): $

(h) the total fixed costs (including both fixed product and fixed period cost): $

Based on the above answers, calculate

(i) the break-even point in units: units

(j) the degree of operating leverage:

(k) the margin of safety in units: units

Calculate:

(l) the sales dollars needed to earn income after taxes of $210,000: $

(m) sales dollars required to yield an after-tax profit of 7.5% of sales: $

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