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Need help with the last column. Sheffield manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets:
Need help with the last column.
Sheffield manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,530 canoes, 3,030 canoes, and 3,870 canoes. Canoes sell for $830 each. The standard variable cost information for a canoe is as follows. Direct materials $ 295 Direct labor 117 Variable overhead Utilities 35 Indirect material 30 Indirect labor 60 Total $ 537 Annual fixed overhead cost is expected to be: Maintenance $ 24,400 Depreciation 40.600 Insurance 28.400 Rent 34.020 Total $ 127.420 GE BE Unit 2,530 Sales revenue $ 830 $ 2,099.900 Add : Variable expenses V Direct material 295 746,350 Direct labor 60 151 800 Total variable expenses 537 1.358 610 Contribution margin S 293 741.290 Unit 2,530 3,030 3,870 $ 830 $ 2,099,900 $ 2.514,900 $ 2,825 100 295 746,350 893,850 117 296,010 354 510 35 88,550 106,050 30 75.900 90.900 60 151 800 181.800 537 1.358.610 1627110 293 741290 887790 Step by Step Solution
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