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Please explain how I would find this information. Please detail the figures used and how they were found. Crane Industries carries no inventories. Its product
Please explain how I would find this information. Please detail the figures used and how they were found.
Crane 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, 2022, Crane's break-even point was $1.38 million. On sales of $1.18 million, its income statement showed a gross profit of $213,000, direct materials cost of $401,000, and direct labor costs of $500,000. The contribution margin was $177,000, and variable manufacturing overhead was $48,000. (a) Your answer is correct. Calculate the following: 1. Variable selling and administrative expenses. 2. Fixed manufacturing overhead. $ 3. Fixed selling and administrative expenses. $ eTextbook and Media Attempts: 1 of 3 used (b) Ignore your answer to above part, assume that fixed manufacturing overhead was $101,000 and the fixed selling and administrative expenses were $80,000. 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 $Step by Step Solution
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