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Question 9 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 9 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, 2014, Kaiser's break-even point was 51.39 million. On sales of 51.18 million, its income statement showed a gross profit of 5177,000, direct materials cost of 5403,900, and direct labor costs of $501,300. The contribution margin was $177,000, and variable manufacturing overhead was $50,000. (a) Calculate the following: (Round intermediate calculations to 2 decimal places e.g. 2.25% and final answers to 0 decimal places, e.g. 1,225.) 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 5101,000 and the fixed selling and administrative expenses were $79,800. The marketing vice president feels that if the company increased its advertising, sales could be increased by 19%. 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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