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Kaiser 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.

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Kaiser 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, 2017, Kaiser's break-even point was $1.37 million. On sales of $1.20 million, its income statement showed a gross profit of $176,000, direct materials cost of $402,000, and direct labor costs of $505,000. The contribution margin was 5176,000, and variable manufacturing overhead was $50,000. (a) Calculate the following: (Round intermediate calculations to 2 decimal places es. 225 and final answers to decimal places, eg. 1.225.) Variable selling and administrative expenses. $ Fixed manufacturing overhead. Fixed selling and administrative expenses. 1 2 $ 3 $ (b) Ignoring your answer to part (a), assume that fored manufacturing overhead was $102,000 and the fixed selling and administrative expenses were $85.000. The marketing vice president feels that if the company increased its advertising, sales could be increased by 19%. 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 $

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