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please show steps Kanda Inc. produces and sells garage doors and has a relevant range between 1,000 units and 1,800 units per month. Manufacturing overhead
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Kanda Inc. produces and sells garage doors and has a relevant range between 1,000 units and 1,800 units per month. Manufacturing overhead costs range from $360,000 to $480,000 at the low and high ends of the relevant range, respectively. All Kanda's products are customized, so it does not keep any inventory. Kanda's income tax rate is 30%. The following is Kanda's sales and costs information for the month of October: Sales $1,680,000 Sales units 1,400 Direct materials $154,000 Direct labour $308,000 ? Manufacturing Overhead Variable Operating Expenses Earnings after taxes 10% of Sales $168,000 Using the high-low method, calculate: Please round your calculations to the nearest dollar. (a) the fixed manufacturing overhead cost: $ (b) the unit variable manufacturing overhead cost: $ (c) the total manufacturing overhead cost for 1,400 units: $ (d) the total product cost for 1,400 units; $ Calculate: Please round your calculations to 1 decimal points. Do not enter "$" and "" for your answers. (a) the contribution margin: % % (b) the gross margin: % Calculate: (a) the total period costs (operating expenses): $ (b) the fixed period costs (operating expenses): $ (c) the total fixed costs (including both fixed product and fixed period cost): $ Based on the above answers, calculate (a) the break-even point in units: units (b) the degree of operating leverage: (c) at the current sales level, calculate the margin of safety in units: units Calculate: (a) the sales dollars needed to earn income after taxes of $210,000: $ (b) sales dollars required to yield an after-tax profit of 14% of sales: $Step by Step Solution
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