## Cullumber Industries Financial Analysis ExerciseCullumber 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, Cullumber's break-even point was $1.35 million. On sales of $1.50 million, its GAAP income statement showed a gross profit of $257,500, direct materials cost of $508,000, and direct labor costs of $605,000. The contribution margin was $195,000, and variable manufacturing overhead was $50,000.### Exercise (a)**Calculate the following:**1. **Variable selling and administrative expenses:** - \[ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \] $2. **Fixed manufacturing overhead:** - \[ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \] $3. **Fixed selling and administrative expenses:** - \[ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \] $In this exercise, you are required to determine the amounts for the variable selling and administrative expenses, fixed manufacturing overhead, and fixed selling and administrative expenses based on the provided financial data.### Detailed Diagram and Graph ExplanationThis section of the exercise does not include any graphs or diagrams. If there were, we would ensure to provide a thorough explanation here, detailing what each graph or diagram represents, the axes used, and the significance of data points. However, in this case, the task is solely focused on understanding and computing specific financial figures.

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Cullumber 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, Cullumber's break-even point was $1.35 million. On sales of $1.50 million, its GAAP income statement showed a gross profit of $257,500, direct materials cost of $508,000, and direct labor costs of $605,000. The contribution margin was $195,000, and variable manufacturing overhead was $50,000. (a) Calculate the following: 1. Variable selling and administrative expenses. $ 2. 3. Fixed manufacturing overhead. Fixed selling and administrative expenses. +A tA

Cullumber 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, Cullumber's break-even point was $1.35 million. On sales of $1.50 million, its GAAP income statement showed a gross profit of $257,500, direct materials cost of $508,000, and direct labor costs of $605,000. The contribution margin was $195,000, and variable manufacturing overhead was $50,000. (a) Calculate the following: 1. Variable selling and administrative expenses. $ 2. 3. Fixed manufacturing overhead. Fixed selling and administrative expenses. +A tA

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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## Cullumber Industries Financial Analysis Exercise

Cullumber 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, Cullumber's break-even point was $1.35 million. On sales of $1.50 million, its GAAP income statement showed a gross profit of $257,500, direct materials cost of $508,000, and direct labor costs of $605,000. The contribution margin was $195,000, and variable manufacturing overhead was $50,000.

### Exercise (a)

**Calculate the following:**

1. **Variable selling and administrative expenses:**
- \[ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \] $
2. **Fixed manufacturing overhead:**
- \[ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \] $
3. **Fixed selling and administrative expenses:**
- \[ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \] $

In this exercise, you are required to determine the amounts for the variable selling and administrative expenses, fixed manufacturing overhead, and fixed selling and administrative expenses based on the provided financial data.

### Detailed Diagram and Graph Explanation

This section of the exercise does not include any graphs or diagrams. If there were, we would ensure to provide a thorough explanation here, detailing what each graph or diagram represents, the axes used, and the significance of data points. However, in this case, the task is solely focused on understanding and computing specific financial figures.

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