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Pharoah 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.
Pharoah 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, 2020, Pharoah's break-even point was $1.36 million. On sales of $1.18 million, its income statement showed a gross profit of $154,000, direct materials cost of $404,000, and direct labor costs of $500,000. The contribution margin was $118,000, and variable manufacturing overhead was $50,000. Calculate the following: 1. Variable selling and administrative expenses. $ 2. Fixed manufacturing overhead. LA $ 3. Fixed selling and administrative expenses. $ Ignore your answer to above part, assume that fixed manufacturing overhead was $100,000 and the fixed selling and administrative expenses were $82,000. 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? Maximum increased advertising expenditure $
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