Hi RMPQMZ955 Corporation's capacity is 1,000 units. The results for the first year of RMPQMZ955 operations are based on 1,000 units of a single product made and sold and can be found below: Direct materials used, variable $4,000 Administrative office salaries, fixed $10,000 (ID#75043) Factory supervision, fixed $4,0000 Sales commissions, variable ?? Depreciation, factory building, fixed $11,000 Depreciation, administrative office equipment, fixed $500 Indirect materials, factory, variable $2,000 Direct labor, variable $8,000 Advertising, fixed ?? Insurance, factory, fixed $1,500 Administrative office supplies (billing), variable $1,000 Property taxes, factory, fixed $2,000 Utilities, factory, fixed $5,200 Sales $150,00O Net Operating Income $89,00O Contribution Margin $130,000 Q: What was RMPQMZ955's advertising cost for the year? A: $

Hi RMPQMZ955 Corporation's capacity is 1,000 units. The results for the first year of RMPQMZ955 operations are based on 1,000 units of a single product made and sold and can be found below: Direct materials used, variable $4,000 Administrative office salaries, fixed $10,000 (ID#75043) Factory supervision, fixed $4,0000 Sales commissions, variable ?? Depreciation, factory building, fixed $11,000 Depreciation, administrative office equipment, fixed $500 Indirect materials, factory, variable $2,000 Direct labor, variable $8,000 Advertising, fixed ?? Insurance, factory, fixed $1,500 Administrative office supplies (billing), variable $1,000 Property taxes, factory, fixed $2,000 Utilities, factory, fixed $5,200 Sales $150,00O Net Operating Income $89,00O Contribution Margin $130,000 Q: What was RMPQMZ955's advertising cost for the year? A: $

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.2.6P: Break-even sales under present and proposed conditions Kearney Company, operating at full capacity,...

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A company is spending 70,000 per year for inspecting, 60,000 per year for purchasing, and 56,000 per year for reworking products. What is a good estimate of non-value-added costs? a. 126,000 b. 70,000 c. 56,000 d. 130,000
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Break-even sales under present and proposed conditions Kearney Company, operating at full capacity, sold 400,000 units at a price of $246.60 per unit during 20Y5. Its income statement for 20Y5 is as follows: The division of costs between fixed and variable is as follows: Management is considering a plant expansion program that will permit an increase of $8,631,000 (35.000 units at $246.60) in yearly sales. The expansion will increase fixed costs by $3,600,000 but will not affect the relationship between sales and variable costs. Instructions Determine the maximum operating income possible with the expanded plant.
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