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The foowing information appies to the quesbans displayed beiow Gulf Satee Manufacturing has the following data from year 1 operations, whier. to bo used for
The foowing information appies to the quesbans displayed beiow Gulf Satee Manufacturing has the following data from year 1 operations, whier". to bo used for developing year 2 budget estimates sees revenues 09.500 units $1,755,000 Materiels Varlable cash costs Pbked cash costs Depredietion [fixed s 313,000 427000 71,000 211,000 Marketing and administrative costs Marketing (veriable, cash 220,000 53,000 212,000 19,000 Administrative (ed, cah) Administrative deprecation 1626,000 $129,000 Operating profes All depreciation cha es ere ed. Old meru a urin e upne? i h an annual depreciation cha e of S15 2 wil be replaced n year 2 ith ne equipment that will in an annual deprece o char e ? 21,700. Sa es vol me and pices are expected to increase by 12 percent and 6 pe cent, espec ve y. On perunt basis, expectations are thet materials ceats will increase by 10 percent and variable manufacturing eoats wll decreeae by 2 percent Fixed cesh manufacturing ceats are expected to decrease by 7 percen. Variable marketing cases wal ehange ith volume Adeinistrative eash cost?are expected to inteMe by pereenl hont eies aro kept at zero. Gulf States eperates on a eash basis
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