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Please use the following information for Questions 14-18: Kinki Inc. produces and sells projectors and has a relevant range between 1,200 units and 2,100
Please use the following information for Questions 14-18: Kinki Inc. produces and sells projectors and has a relevant range between 1,200 units and 2,100 units per month. Manufacturing overhead costs range from $450,000 to $540,000 at the low and high ends of the relevant range, respectively. All Kinki's products are customized, so it does not keep any inventory. Kinki's income tax rate is 25%. The following is Kinki's sales and costs information for the month of June: Sales Sales units Direct materials Direct labour Manufacturing Overhead Variable Operating Expenses Earnings after taxes Do not enter "$" and "" for your answers. $1,200,000 1,500 $135,000 $180,000 ? 11.25% of Sales $112,500 Do not enter "$" and "," for your answers. 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 1,500 units: $ (d) the total product cost for 1,500 units; $ Calculate: Please round your calculations to 2 decimal points. Do not enter "$" and "," for your answers. (a) the contribution margin: % (b) the gross margin: % Do not enter "$" and "" for your answers. 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): $ Do not enter "$" and "," for your answers. Based on the above answers, calculate (a) the break-even point in units: (b) the degree of operating leverage: (c) the margin of safety in units: units units Do not enter "$" and "," for your answers. Calculate: (a) the sales dollars needed to earn income after taxes of $150,000: $ (b) sales dollars required to yield an after-tax profit of 10.5% of sales: $
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