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Question 2 Kaiser Industries carries no inventories. Its product is manufactured only when a customer's order is received. It is then shipped immediately after it
Question 2 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 $133 million. On sales of $1.20 million, its income statement showed a gross profit of $161,000, direct materials cost of $401,000, and direct labor costs of $505,000 The contribution margin was $161,000, and variable manufacturing overhead was $50,000. a) Calculate the following: Round intermediate calculations to 2 decimal places e g 2.25 and fin al answers to O decimal places e 3. 1 2 1. Variable selling and administrative expenses. 2. Fixed manufacturing overhead. 3. Fixed selling and administrative expenses. $ (b) Ignoring your answer to part (a), assume that fixed manufacturing overhead was $101,000 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 creased by 20%. What is the maximum ncreased advertising cost the company an incur and st report the same income sb fore e advertising expenditure? Maximum increased advertising expenditure $
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