Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Percent of Selling price Variable expenses Per Unit $130 Sales
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Percent of Selling price Variable expenses Per Unit $130 Sales 100% 78 60% Contribution margin $ 52 40% The company is currently selling 6,000 units per month. Fixed expenses are $263,000 per month. The marketing manager believes that a $5,000 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? The Tobler Corporation has budgeted production for next year as follows: Quarter First Production in units 10,000 Second 12,000 Third 16,000 Fourth 14,000 Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,000 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's production needs. Budgeted purchases of raw materials in the third quarter would be: Depasquale Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.61 direct labor-hours. The direct labor rate is $8.10 per direct labor-hour. The production budget calls for producing 6,100 units in May and 6,500 units in June. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months? (Round your intermediate calculations to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Total contribution margin Units sold Contribution margin per unit 6000 52 312000 Current profit Tota...See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started