WHITNEY COMPANY Income Statement For the Year Ended December 31 Sales (45,000 units at $10 per unit) Less cost of goods sold: Direct materials $450,000 $90,000 Direct labor.. Manufacturing overhead 78,300 98,500 266,800 Gross margin Less operating expenses: Selling expenses: Variable: Sales commissions Shipping 183,200 ... $27,000 5,400 32,400 Fixed (advertising, salaries) 120,000 Administrative: Variable (billing and other) Fixed (salaries and other) 1,800 48,000 202,200 Net operating loss $ (19,000) All variable expenses in the company vary in terms of unit sold, except for sales commissions. which are based on sales dollars. Variable manufacturing overhead is 30 cents per unit. There were no beginning or ending inventories. Whitney Company's plant has a capacity of 75,000 units per year.
WHITNEY COMPANY Income Statement For the Year Ended December 31 Sales (45,000 units at $10 per unit) Less cost of goods sold: Direct materials $450,000 $90,000 Direct labor.. Manufacturing overhead 78,300 98,500 266,800 Gross margin Less operating expenses: Selling expenses: Variable: Sales commissions Shipping 183,200 ... $27,000 5,400 32,400 Fixed (advertising, salaries) 120,000 Administrative: Variable (billing and other) Fixed (salaries and other) 1,800 48,000 202,200 Net operating loss $ (19,000) All variable expenses in the company vary in terms of unit sold, except for sales commissions. which are based on sales dollars. Variable manufacturing overhead is 30 cents per unit. There were no beginning or ending inventories. Whitney Company's plant has a capacity of 75,000 units per year.
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 24E: Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual...
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The president is considering a proposals prepared by members of his staff. For next year, the vice president would like to reduce the unit selling price by 20%. She is certain that this would fill the plant capacity. What profits would be under the vice president's proposal? include both Total and Per Unit columns.
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