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I am having a hard time figuring out the question below. I have become stumped on this one question. ACE-220 Managerial Accounting. I am stumped
I am having a hard time figuring out the question below. I have become stumped on this one question.
ACE-220 Managerial Accounting. I am stumped on this question. Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $186 per unit during d1e current year. Its income statement is as follows: Sales $156,000,000 Cost of goods sold (99.000,000) Gross profit samooomoo Expenses: Selling expenses $16,000,000 Administrative expenses 9,400,000 Total expenses (25,400,000) Operating income $61,600,000 | The division of costs between variabie and xed is as follows: Variable Find Best of goods sold ?0"-i'i 30% Selling expenses 75% 25% Administrative 50% 50% eupenss Management is considering a plant expansion prngram for the following year that will permit an increase of $9,300,000 in yearly sales. The expansion will increase fixed costs by $3.000,000 but will not alfact the relationship between sales and vanahle costs. 6. Determine the maximum operating income possible with the expanded plant. '-' 156,000,000 XStep by Step Solution
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