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Carla Vista Corporation has collected the following information after its first year of sales Sales were $1,770,000 on 118,000 units: selling expenses $295,000 (40% variable and 60% foxed); direct materials $602.980: direct labor $342.200: administrative expenses $318.600 (20% variable and 80% foxed); and manufacturing overhead $413,000 (70% variable and 30% foxed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year. (a) Your answer is partially correct Compute (1) the contribution margin for the current year and the projected year, and (2) the foxed costs for the current year. (Assume that fixed costs will remain the same in the projected year) (1) Contribution margin for current year $ (2) Contribution margin for projected year Fixed costs for current year 555780

Carla Vista Corporation has collected the following information after its first year of sales Sales were $1,770,000 on 118,000 units: selling expenses $295,000 (40% variable and 60% foxed); direct materials $602.980: direct labor $342.200: administrative expenses $318.600 (20% variable and 80% foxed); and manufacturing overhead $413,000 (70% variable and 30% foxed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year. (a) Your answer is partially correct Compute (1) the contribution margin for the current year and the projected year, and (2) the foxed costs for the current year. (Assume that fixed costs will remain the same in the projected year) (1) Contribution margin for current year $ (2) Contribution margin for projected year Fixed costs for current year 555780

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Carla Vista Corporation has collected the following information after its first year of sales Sales were $1,770,000 on 118,000 units: selling expenses $295,000 (40% variable and 60% foxed); direct materials $602.980: direct labor $342.200: administrative expenses $318.600 (20% variable and 80% foxed); and manufacturing overhead $413,000 (70% variable and 30% foxed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year. (a) Your answer is partially correct. Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year. (Assume that fixed costs will remain the same in the projected year) (1) Contribution margin for current year $ (2) Contribution margin for projected year Fixed costs for current year 555780
Transcribed Image Text:Carla Vista Corporation has collected the following information after its first year of sales Sales were $1,770,000 on 118,000 units: selling expenses $295,000 (40% variable and 60% foxed); direct materials $602.980: direct labor $342.200: administrative expenses $318.600 (20% variable and 80% foxed); and manufacturing overhead $413,000 (70% variable and 30% foxed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year. (a) Your answer is partially correct. Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year. (Assume that fixed costs will remain the same in the projected year) (1) Contribution margin for current year $ (2) Contribution margin for projected year Fixed costs for current year 555780
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