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Problem 19-2A Lorge Corporation has collected the following information after its first year of sales. Sales were $2,500,000 on 100,000 units; selling expenses $250,000 (40% variable and 60% fixed); direct materials $1,360,600; direct labor $260,000; administrative expenses $270,000 (20% variable and 80% fixed); and manufacturing overhead $322,000 (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. V Your answer is 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 500,000 Contribution margin for projected year 550,000 (2) Fixed costs for current year 462,600 SHOW SOLUTION SHOW ANSWER LINK TO ΤΕXT VYour answer is correct. Compute the break-even point in units and sales dollars for 2,510.) first year. (Round con ion margin ratio to 2 decimal places e.g. 0.15 and final answers to 0 decimal places, e.g. Break-even point 92,520 units Break-even point 2,313,000

Problem 19-2A Lorge Corporation has collected the following information after its first year of sales. Sales were $2,500,000 on 100,000 units; selling expenses $250,000 (40% variable and 60% fixed); direct materials $1,360,600; direct labor $260,000; administrative expenses $270,000 (20% variable and 80% fixed); and manufacturing overhead $322,000 (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. V Your answer is 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 500,000 Contribution margin for projected year 550,000 (2) Fixed costs for current year 462,600 SHOW SOLUTION SHOW ANSWER LINK TO ΤΕXT VYour answer is correct. Compute the break-even point in units and sales dollars for 2,510.) first year. (Round con ion margin ratio to 2 decimal places e.g. 0.15 and final answers to 0 decimal places, e.g. Break-even point 92,520 units Break-even point 2,313,000

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 19-2A Lorge Corporation has collected the following information after its first year of sales. Sales were $2,500,000 on 100,000 units; selling expenses $250,000 (40% variable and 60% fixed); direct materials $1,360,600; direct labor $260,000; administrative expenses $270,000 (20% variable and 80% fixed); and manufacturing overhead $322,000 (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. V Your answer is 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 500,000 Contribution margin for projected year 550,000 (2) Fixed costs for current year 462,600 SHOW SOLUTION SHOW ANSWER LINK TO ΤΕXT VYour answer is correct. Compute the break-even point in units and sales dollars for 2,510.) first year. (Round con ion margin ratio to 2 decimal places e.g. 0.15 and final answers to 0 decimal places, e.g. Break-even point 92,520 units Break-even point 2,313,000
Transcribed Image Text:Problem 19-2A Lorge Corporation has collected the following information after its first year of sales. Sales were $2,500,000 on 100,000 units; selling expenses $250,000 (40% variable and 60% fixed); direct materials $1,360,600; direct labor $260,000; administrative expenses $270,000 (20% variable and 80% fixed); and manufacturing overhead $322,000 (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. V Your answer is 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 500,000 Contribution margin for projected year 550,000 (2) Fixed costs for current year 462,600 SHOW SOLUTION SHOW ANSWER LINK TO ΤΕXT VYour answer is correct. Compute the break-even point in units and sales dollars for 2,510.) first year. (Round con ion margin ratio to 2 decimal places e.g. 0.15 and final answers to 0 decimal places, e.g. Break-even point 92,520 units Break-even point 2,313,000
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