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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.
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 $1.31 million. On sales of $1.18 million, its income statement showed a gross profit of $160,000, direct materials cost of $401,000, and direct labor costs of $508,000. The contribution margin was $160,000, and variable manufacturing overhead was $49.000. (a) Calculate the following: (Round intermediate calculations to 2 decimal places eg. 2.25 and final answers to O decimal places, eg 1.225.) 1. $ 2 Variable selling and administrative expenses. Fixed manufacturing overhead. Fixed selling and administrative expenses. $ 3. $ (b) Ignoring your answer to part (a), assume that fixed manufacturing overhead was $100,000 and the fixed selling and administrative expenses were $79,000. 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 $ Presto Corp. had total variable costs of $181,841, total fixed costs of $174,700, and total revenues of $298,100. Compute the required sales in dollars to break even. (Round answer to decimal places, eg. 1,225.) Required sales $
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