Crane 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, 2025, Crane's break-even point was $1.34 million. On sales of $1.50 million, its GAAP income statement showed a gross profit of $242,500, direct materials cost of $508,000, and direct labor costs of $624,000. The contribution margin was $180,000, and variable manufacturing overhead was $52,000. Calculate the following: Your answer is incorrect. 1. Variable selling and administrative expenses. $ 2. 3. Fixed manufacturing overhead. Fixed selling and administrative expenses. $ Maximum increased advertising expenditure $ $ Ignoring your answer to above part, assume that fixed manufacturing overhead was $102,000 and the fixed selling and administrative expenses were $75,000. 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?

Crane 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, 2025, Crane's break-even point was $1.34 million. On sales of $1.50 million, its GAAP income statement showed a gross profit of $242,500, direct materials cost of $508,000, and direct labor costs of $624,000. The contribution margin was $180,000, and variable manufacturing overhead was $52,000. Calculate the following: Your answer is incorrect. 1. Variable selling and administrative expenses. $ 2. 3. Fixed manufacturing overhead. Fixed selling and administrative expenses. $ Maximum increased advertising expenditure $ $ Ignoring your answer to above part, assume that fixed manufacturing overhead was $102,000 and the fixed selling and administrative expenses were $75,000. 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?

Name: Hanshaben Crane Industries carries no inventories. Its product is manu
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Description: Hanshaben Crane 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, 2025, Crane's break-even point was $1.34 mi

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Please help me. Thankyou.
Subject - account Please help me. Thankyou.
ABC began operations at the beginning of the current year and keeps absorption-cost accounting records. There is no beginning finished-goods inventory. ABC achieved its planned production level for the year. The company's fixed manufacturing overhead totaled RM188,000, and the firm paid a 10% commission based on gross sales (RM) to its sales force. On the company's profit or loss statement and end-of-year statement of financial position, the following information was included: Profit or Loss Data: RM Sales revenues (35,000 units @ RM24) 840,000 Gross Margin 210,000 Total sales and administrative expenses 160,000 Financial Position Data: Ending finished-goods inventory (12,000 units) 216,0000 Compute the number of units that ABC planned to produce during the year.
ABC began operations at the beginning of the current year and keeps absorption-cost accounting records. There is no beginning finished-goods inventory. ABC achieved its planned production level for the year. The company's fixed manufacturing overhead totaled RM188,000, and the firm paid a 10% commission based on gross sales (RM) to its sales force. On the company's profit or loss statement and end-of-year statement of financial position, the following information was included: Profit or Loss Data: RM Sales revenues (35,000 units @ RM24) 840,000 Gross Margin 210,000 Total sales and administrative expenses 160,000 Financial Position Data: Ending finished-goods inventory (12,000 units) 216,0000 Compute ABC's cost of goods sold using absorption costing.
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Whipple Company has sales revenue of $585,000. Cost of goods sold before adjustment is $335,000. The company uses machine hours to allocate manufacturing overhead and estimated 10,450 machine hours would be used during the year. For the year, manufacturing overhead was under-allocated by $13,400. The company's actual manufacturing overhead is $91,000. What is the actual gross profit? Select one: a. $250,000 b. $159,000 c. $236,600 d. $104,400 e. $263,400
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Turtle Inc.’s income statement for the year 2019 on production and sales of 200,000 units is as follows: Revenues P2,600,000 Cost of good sold 1,600,000 Gross margin 1,000,000 Marketing and distribution costs 1, 150,000 Operating income (loss) P(150,000) Turtle’s fixed manufacturing costs included in the cost of sales were P500,000, and the variable portion for marketing and distribution costs were P 800,000. The break-even point for Turtle for the year 2019 in units is 242,858 55,555 68,965 142,856 Group of answer choices 1 2 3 4