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MANAGERIAL ACCOUNTING FUND. W/CONNECT
5th Edition
ISBN: 9781259688713
Author: Wild
Publisher: MCG
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Chapter 5, Problem 15E
Copper Company expect to sell 200,000 units of its product next year, which would generate total sales of $17 million. Management predicts that pretax net income for next year will be $1,250,000 and that the contribution margin per unit will be $25. Use this information to compute next year’s total expected (a) variable costs and (b) fixed costs.
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Harrison Co. expects to sell 200,000 units of its product next year, which would generate total sales of $17 million. Management predicts that pretax net income for next year will be $1,250,000 and that the contribution margin per unit will be $25. Use this information to compute next year’s total expected (a) variable costs and (b) fixed costs.
Harrison Company expects to sell 180,000 units of its product next year, which would generate total sales of $14,940,000.
Management predicts that income for next year will be $1,230,000 and that the contribution margin per unit will be $27.
Complete the below table to calculate the next year's expected variable costs and fixed costs.
HARRISON COMPANY
Forecasted Contribution Margin Income Statement
Units
$ per unit
Contribution margin
180,000
27
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Chapter 5 Solutions
MANAGERIAL ACCOUNTING FUND. W/CONNECT
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