Unit VI question 10 part a %24%24(0)Current Attempt in ProgressCullumber Corporation has collected the following information after its first year of operations. Sales were$1,440,000 on 120,000 units, selling expenses $210,000 (40% variable and 60% fixed), direct materials $504,000, direct labor$169,400, administrative expenses $276,000 (20% variable and 80% fixed), and manufacturing overhead $382,000 (709% variable and30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected thatunit sales will increase by 10% next year.(e)Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year andthe projected year. Unit selling price, unit variable costs, and fixed costs are estimated to remain unchanged.Contribution margin for current yearContribution margin for projected year(2)Total fixed costseTextbook and MediaSave for LateAttempts: 0 of 3 usedSubmit Answer(b)The parts of this question must be completed in order. This part will be avallable whenyou complete the part above.(c)The parts of this question must be completed in order. This part will be available when you complete the part above.()The parts of this question must be completed in order. This part will be available when you complete the part above.

Compute (1) the contribution margin for the current year and the projected year Current Year…

the projected year. Unit selling price, unit variable costs, and fixed costs are estimated to (1) Contribution margin for current year 5. Contribution margin for projected year (2) Total fixed costs %24

the projected year. Unit selling price, unit variable costs, and fixed costs are estimated to (1) Contribution margin for current year 5. Contribution margin for projected year (2) Total fixed costs %24

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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ok t nt ences Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Whitman Company Income Statement Sales (42,000 units x $44.60 per unit) Cost of goods sold (42,000 units x $26 per unit) Gross margin Selling and administrative expenses Net operating income Direct materials Direct labor The company's selling and administrative expenses consist of $315,000 per year in fixed expenses and $5 per unit sold in variable expenses. The $26 unit product cost given above is computed as follows: $ 1,873,200 1,092,000 781,200 525,000 $ 256,200 Variable manufacturing overhead Fixed manufacturing overhead ($318,000+ 53,000 units) Absorption costing unit product cost $12 4 4 6 $26 Required: 1. Redo the company's income statement in the contribution format using variable costing. 2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the…
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