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Sales ($60 10,000) $600,000 Cost of goods sold: Direct materials ($12 10,000) $120,000 Direct labor ($9 10,000) 90,000 Variable factory overhead ($7.50 10,000) 75,000 Fixed
Sales ($60 10,000) | $600,000 | |
Cost of goods sold: | ||
Direct materials ($12 10,000) | $120,000 | |
Direct labor ($9 10,000) | 90,000 | |
Variable factory overhead ($7.50 10,000) | 75,000 | |
Fixed factory overhead | 120,000 | 405,000 |
Gross profit | $195,000 | |
Selling and administrative expenses: | ||
Variable ($1.50 10,000) | $ 15,000 | |
Fixed | 90,000 | 105,000 |
Operating income | $ 90,000 |
If the monthly sales volume increases by 450 units, DesMaris Company's monthly profits will increase by
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