Sunland Corporation has collected the following information after its first year of sales. Sales were $1,410,000 on 94,000 units; selling expenses $235,000 (40% variable and 60% fixed); direct materials $480,340; direct labor $272,600; administrative expenses $253,800 (20% variable and 80% fixed); and manufacturing overhead $329,000 (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. (a) New attempt is in progress. Some of the new entries may impact the last attempt grading. Your answer is incorrect. 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 $enter a dollar amount Contribution margin for projected year $enter a dollar amount (2) Fixed costs for current year
Sunland Corporation has collected the following information after its first year of sales. Sales were $1,410,000 on 94,000 units; selling expenses $235,000 (40% variable and 60% fixed); direct materials $480,340; direct labor $272,600; administrative expenses $253,800 (20% variable and 80% fixed); and manufacturing
(a)
New attempt is in progress. Some of the new entries may impact the last attempt grading.
Your answer is incorrect.
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 |
$enter a dollar amount |
||
|---|---|---|---|---|
|
Contribution margin for projected year |
$enter a dollar amount |
|||
|
(2) |
Fixed costs for current year |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
