Answer the following three questions using the information b…
Answer the following three questions using the information below: Ossmann Enterprises reports year-end information from 20X4 as follows:Sales (80,000 units) $480,000Cost of goods sold 320,000Gross margin 160,000Operating expenses 130,000Operating income $ 30,000Ossmann is developing the 20X5 budget. In 20X5 the company would like to increase selling prices by 8%, and as a result expects a decrease in sales volume of 10%. All other operating expenses are expected to remain constant. Assume that COGS is a variable cost and that operating expenses are a fixed cost.Should Ossmann increase the selling price in 20X5?
Read DetailsMcKenna Company manufactured 1,000 finished good units durin…
McKenna Company manufactured 1,000 finished good units during April with a total (fixed and variable) flexible overhead budget of $12,400. The allocation base for both fixed and variable overhead is labor hours. The accountant has been unable to complete the variance analysis report. Selected information is: Variable overhead: Standard cost per finished good unit: .4 labor hours at $4 per hourActual costs: $2,100 for 376 hoursWhat is the flexible budget for variable overhead?
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