17. A manufacturer of premium wire strippers has supplied t…
17. A manufacturer of premium wire strippers has supplied the following data: Units produced and sold 580,000 Sales revenue $ 4,176,000 Variable manufacturing expense $ 2,871,000 Fixed manufacturing expense $ 778,000 Variable selling and administrative expense $ 348,000 Fixed selling and administrative expense $ 104,000 Net operating income $ 75,000 The company’s degree of operating leverage is closest to:
Read Details13. The management of Casablanca Manufacturing Corporation b…
13. The management of Casablanca Manufacturing Corporation believes that machine-hours is an appropriate measure of activity for overhead cost. Shown below are machine-hours and total overhead costs for the past six months: Machine-Hours Overhead Cost Jan 150,000 $ 339,000 Feb 140,000 $ 328,000 Mar 160,000 $ 350,000 Apr 130,000 $ 319,500 May 170,000 $ 362,500 Jun 200,000 $ 400,000 Assume that the relevant range includes all of the activity levels mentioned in this problem. If Casablanca expects to incur 185,000 machine hours next month, what will the estimated total overhead cost be using the high-low method?
Read Details16. Sunnripe Corporation manufactures and sells two types o…
16. Sunnripe Corporation manufactures and sells two types of beach towels, standard and deluxe. Sunnripe expects the following operating results next year: Standard Deluxe Total sales $ 450,000 $ 50,000 Total variable expenses $ 360,000 $ 20,000 Sunnripe expects to have a total of $57,600 in fixed expenses next year. What is Sunnripe’s overall break-even point next year in sales dollars?
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