Question
Goofy Manufacturing Limited makes plastic pop down trays for use in airplanes. During 2019, the following costs were incurred: PERCENT PERCENT AMOUNT FIXED VARIABLE Direct
Goofy Manufacturing Limited makes plastic pop down trays for use in airplanes. During 2019, the following costs were incurred:
PERCENT PERCENT
AMOUNT FIXED VARIABLE
Direct material $1,300,000 100
Direct labor 910,000 100
Variable manufacturing overhead 270,000 100
Fixed manufacturing overhead 950,000 100
Selling costs 190,000 20 80
Administration costs 115,000 10 90
Sales for 2019 totaled $3,950,000 (25,000 trays) and there were no beginning and ending inventories.
Required:
ALL CALCULATIONS MUST BE SHOWN
- Prepare a contribution income statement for the year ended December 31, 2019.
- Determine the sales in dollars and units required to break even.
- Determine the sales in dollars and units required to make a $150,000 profit per year.
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