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Problem 18-5A (Part Level Submission) Mozena Corporation has collected the following information after its first year of sales. Sales were $2,000,000 on 100,000 units; selling expenses $248,800 (40% variable and 60% fixed); direct materials $511,200; direct labor $485,970; administrative expenses $279,300 (20% variable and 80% fixed); manufacturing overhead $353,500 (70% variable and 30% fixed). 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. Try again. 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 Contribution margin for projected year

Problem 18-5A (Part Level Submission) Mozena Corporation has collected the following information after its first year of sales. Sales were $2,000,000 on 100,000 units; selling expenses $248,800 (40% variable and 60% fixed); direct materials $511,200; direct labor $485,970; administrative expenses $279,300 (20% variable and 80% fixed); manufacturing overhead $353,500 (70% variable and 30% fixed). 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. Try again. 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 Contribution margin for projected year

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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Problem 18-5A (Part Level Submission) Mozena Corporation has collected the following information after its first year of sales. Sales were $2,000,000 on 100,000 units; selling expenses $248,800 (40% variable and 60% fixed); direct materials $511,200; direct labor $485,970; administrative expenses $279,300 (20% variable and 80% fixed); manufacturing overhead $353,500 (70% variable and 30% fixed). 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. Try again. 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 Contribution margin for projected year (2) Fixed Costs ♡ 13 (B) Compute the break-even point in units and sales dollars for the first year. (Round contribution margin ratio to 2 decimal places e.g. 0.15 and final answers to 0 decimal places, e.g. 2,510.)
Transcribed Image Text:Problem 18-5A (Part Level Submission) Mozena Corporation has collected the following information after its first year of sales. Sales were $2,000,000 on 100,000 units; selling expenses $248,800 (40% variable and 60% fixed); direct materials $511,200; direct labor $485,970; administrative expenses $279,300 (20% variable and 80% fixed); manufacturing overhead $353,500 (70% variable and 30% fixed). 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. Try again. 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 Contribution margin for projected year (2) Fixed Costs ♡ 13 (B) Compute the break-even point in units and sales dollars for the first year. (Round contribution margin ratio to 2 decimal places e.g. 0.15 and final answers to 0 decimal places, e.g. 2,510.)
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