Pharoah 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, 2020, Pharoah's break-even point was $1.38 million. On sales of$119 million, its income statement showed a gross profit of $178,800, direct materials cost of $405.000, and direct labor costs of$503,000. The contribution margin was $142,800, and variable manufacturing overhead was $51,000.(a)Your AnswerCorrect Answer (Used)- Your answer is partially correct.Calculate the following:1.Variable selling and administrative expenses.882002.Fixed manufacturing overhead.241656003.Fixed selling and administrative expenses.113400eTextbook and MediaSolutionAttempts: 3 of 3 used(b)Your answer is incorrect.Ignore your answer to above part, assume that fixed manufacturing overhead was $100,000 and the fixed selling andadministrative expenses were $82,000. The marketing vice president feels that if the company increased its advertising, salescould be increased by 19%. What is the maximum increased advertising cost the company can incur and still report the sameincome as before the advertising expenditure?Maximum increased advertising expenditure%24

Name: Pharoah Industries carries no inventories. Its product is manufacture
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Description: Pharoah 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, 2020, Pharoah's break-even point was $1.38 million

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Pharoah 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, 2020, Pharoah's break-even point was $1.38 million. On sales of $119 million, its income statement showed a gross profit of $178,800, direct materials cost of $405,000, and direct labor costs of $503,000. The contribution margin was $142,800, and variable manufacturing overhead was $51,000. (a) Your Answer Correct Answer (Used) Your answer is partially correct. Calculate the following: 1. Variable selling and administrative expenses. 88200 Fixed manufacturing overhead. 165600 3. Fixed selling and administrative expenses. 113400 %24 2.

Pharoah 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, 2020, Pharoah's break-even point was $1.38 million. On sales of $119 million, its income statement showed a gross profit of $178,800, direct materials cost of $405,000, and direct labor costs of $503,000. The contribution margin was $142,800, and variable manufacturing overhead was $51,000. (a) Your Answer Correct Answer (Used) Your answer is partially correct. Calculate the following: 1. Variable selling and administrative expenses. 88200 Fixed manufacturing overhead. 165600 3. Fixed selling and administrative expenses. 113400 %24 2.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

Topic Video

Question

Pharoah 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, 2020, Pharoah's break-even point was $1.38 million. On sales of
$119 million, its income statement showed a gross profit of $178,800, direct materials cost of $405.000, and direct labor costs of
$503,000. The contribution margin was $142,800, and variable manufacturing overhead was $51,000.
(a)
Your Answer
Correct Answer (Used)
- Your answer is partially correct.
Calculate the following:
1.
Variable selling and administrative expenses.
88200
2.
Fixed manufacturing overhead.
24
165600
3.
Fixed selling and administrative expenses.
113400
eTextbook and Media
Solution
Attempts: 3 of 3 used
(b)
Your answer is incorrect.
Ignore 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 19%. What is the maximum increased advertising cost the company can incur and still report the same
income as before the advertising expenditure?
Maximum increased advertising expenditure
%24

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