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PR 7-49 (Static) CVP; Multiple Products; Changes in Costs and Sales Mix (LO 7.4, 7-5) [The following information applies to the questions displayed below] Cincinnati

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PR 7-49 (Static) CVP; Multiple Products; Changes in Costs and Sales Mix (LO 7.4, 7-5) [The following information applies to the questions displayed below] Cincinnati Tool Company (CTC) manufactures a line of electric garden tools that are sold in general hardware stores. The company's controller, Will Fulton, has just recelved the sales forecast for the coming year for CTC's three products: hedge clippers, weeders, and leaf blowers. CTC has experienced considerable variations in sales volumes and variable costs over the past two years, and Fulton belleves the forecast should be carefully evaluated from a cost-volume-profit vlewpoint. The preliminary budget information for 202 follows: For 202, CTC's fixed manufacturing overhead is budgeted at $2,000,000, and the company's fixed selling and administrative expenses are forecasted to be $600,000. CTC has a tax rate of 40 percent. PR 7-49 (Static) Part 1: Determine CTC's budgeted net income for 202. Required: 1. Determine CTC's budgeted net income for 202. PR 7-49 (Static) CVP; Multiple Products; Changes in Costs and Sales Mix (LO 7.4, 7-5) [The following information applies to the questions displayed below] Cincinnati Tool Company (CTC) manufactures a line of electric garden tools that are sold in general hardware stores. The company's controller, Will Fulton, has just recelved the sales forecast for the coming year for CTC's three products: hedge clippers, weeders, and leaf blowers. CTC has experienced considerable variations in sales volumes and variable costs over the past two years, and Fulton belleves the forecast should be carefully evaluated from a cost-volume-profit vlewpoint. The preliminary budget information for 202 follows: For 202, CTC's fixed manufacturing overhead is budgeted at $2,000,000, and the company's fixed selling and administrative expenses are forecasted to be $600,000. CTC has a tax rate of 40 percent. PR 7-49 (Static) Part 1: Determine CTC's budgeted net income for 202. Required: 1. Determine CTC's budgeted net income for 202

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