Sheridan 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, 2022, Sheridan's break-even point was $1.39 million. On sales of $1.19 million, its income statement showed a gross profit of $190,700, direct materials cost of $410,000, and direct labor costs of $502,000. The contribution margin was $154,700, and variable manufacturing overhead was $50,000. (a) Calculate the following: 1. 2. 3. Your answer is correct. (b) Variable selling and administrative expenses. Fixed manufacturing overhead. Fixed selling and administrative expenses. eTextbook and Media Maximum Increased advertising expenditure $ $ $ $ 73300 37300 143400 Ignore your answer to above part, assume that fixed manufacturing overhead was $100,000 and the fixed selling and administrative expenses were $79,000. The marketing vice president feels that if the company increased its advertising, sales could be increased by 20%. What is the maximum increased advertising cost the company can incur and still report the same income as before the advertising expenditure? Attempts: 2 of 3 used

5 Sherlidan Industries carries no inwentories. Its product is manufactured only when a customer's order is received, it is then shipped immediately after it is made. For its fuscal year ended October 31,2022 , Sheridan's break-even point was $1.39 million. On sales of $1,19 million, its income statement showed a gross profit of $190,700, direct materials cost of $410,000, and direct labor costs of $502,000. The contribution margin was $154,700, and variable manufacturing overhead was $0,000. (a) Calculate the following: 1. Variable selting and adnainistrative expenses. 2. Fied munufacturinzowerhead. 3. Foed selling and administrative expenses eTextbookand Media (b) income a befoce the advertune enenditure? Makimum increand advertine oxpendiure