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XY Company estimated its sales for the coming 4 months as follows: October $10,000 November $11,000 December $15,000 January $9,000 Estimated cost of goods sold
XY Company estimated its sales for the coming 4 months as follows: | |||
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October |
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| $10,000 |
November |
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| $11,000 |
December |
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| $15,000 |
January |
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| $9,000 |
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Estimated cost of goods sold |
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| 55.00% |
Other variable costs (commissions) |
| 20.00% | |
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Estimated fixed costs |
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| $2,500.00 |
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The company maintains its inventory at twice it estimated sales requirements | |||
(sales requirements are cost of goods sold of the next month) | |||
The beginning inventory |
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| $9,000 |
Contribution margin for November is
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