Unit VI question 11 part A %24%242.Wildhorse Industries carries no inventories. Its product is manufactured only when a customer's order is received. It is then shippedimmediately after it is made. For its fiscal year ended October 31, 2022, Wildhorse's break-even pointwas $1.37 million. On sales of$150 million, its GAAP income statementshowed a gross profit of $257,500, direct materials cost of $515,000, and direct laborcosts.of $600,000. The contribution margin was $195,000, and varlable manufacturing overhead was S51,000.(e)Calculate the following:1.Variable selling and administrative expenses.Fixed manufacturing overhead.3.Fixed selling and administrative expenses.eTextbook and MediaAttempts: 0 of 3 usedSubmit Answer(b)The parts of this question must be completed in order. This part will be available when you complete the part above.

Contribution margin = sales - variable cost Break even point = Fixed cost / CM ratio gross profit =…

Answered: %24 %24 2. Wildhorse Industries carries…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Unit VI question 11 part A

%24
%24
2.
Wildhorse 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, 2022, Wildhorse's break-even pointwas $1.37 million. On sales of
$150 million, its GAAP income statementshowed a gross profit of $257,500, direct materials cost of $515,000, and direct laborcosts.
of $600,000. The contribution margin was $195,000, and varlable manufacturing overhead was S51,000.
(e)
Calculate the following:
1.
Variable selling and administrative expenses.
Fixed manufacturing overhead.
3.
Fixed selling and administrative expenses.
eTextbook and Media
Attempts: 0 of 3 used
Submit Answer
(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.

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Ignoring 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, assuming that the contribution margin ratio remains unchanged?

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