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Problem 19-6A Kaiser Industries carries no inventories. Its product is manufactured only when a customer's order is received. It is then shipped immediately after it

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Problem 19-6A Kaiser 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, 2017, Kaiser's break-even point was $1.30 million. On sales of $1.17 million, its income statement showed a gross profit of $178,000, direct materials cost of $407,000, and direct labor costs of $500,000. The contribution margin was $178,000, and variable manufacturing overhead was $48,000 (a) Calculate the following: (Round intermediate calculations to 2 decimal places e.g. 2.25 and final answers to O decimal places, e.g. 1,225.) 1. Variable selling and administrative expenses. 2. Fixed manufacturing overhead. s 3. Fixed selling and administrative expenses (b) Ignoring your answer to part (a), assume that fixed manufacturing overhead was $100,000 and the fixed selling and administrative expenses were $85,000. The marketing vice president feels that if the company increased its advertising, sales could be increased by 21%. 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

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