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* It's Mangerial accounting question. Ventana Inc. sells a single product for $49. Its management estimates the following revenues and costs for the year 2018:
* It's Mangerial accounting question.
Ventana Inc. sells a single product for $49. Its management estimates the following revenues and costs for the year 2018: $18.000 21,000 3,000 2,000 $625,000 Selling expenses - Variable Net Sales Direct Materials Direct Labour Mfg Overhead - Variable Mfg Overhead - Fixed 80,000 Selling expenses Fixed 79,000 Admin expenses - Variable 33,000 Admin expenses - Fixed 24,000 Required: 1. Assuming fixed costs and net sales are spread evenly throughout the year, determine 2. Calculate the contribution margin ratio, the annual margin of safety ratio, and the 3. Determine the percentage increase of annual profits if Ventana Inc. increases its selling 4. Assume the price remains at $49 per unit and variable costs remain the same per unit, Ventana's monthly break-even point in (a) units and (b) dollars annual profit price by 23% and all other factors (including demand) remain constant. but fixed costs increase by 20% annually. Calculate the percentage increase in unit sales required to achieve the same level of annual profit calculated in required # 2 5. Determine the sales required to earn an operating income of $370,000 after tax. Perma Inc.'s income tax is 30%Step by Step Solution
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