Assume Poker Face moves forward with buying the cardstock and achieves the projected income amounts...
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Accounting
Assume Poker Face moves forward with buying the cardstock and achieves the projected income amounts for that scenario this year. Suppose sales volume next year is expected to be larger than it is this year, with no change in selling price. Further, since Poker Face will be producing a larger quantity, assume it will be able to secure better pricing for the cardstock. Due to that better pricing, projected variable costs for next year are the same in total as what they are for this year, even with the increase in volume. Fixed costs will be up slightly due to higher salaries and benefits up overall Present a projected income statement for the upcoming year for Poker Face and determine if the manager is still going to be unhappy with his bonus. Explain.
Karen Congo Farmer; Amy Fredin. Cost Accounting: With Integrated Data Analytics, st Edition p Kindle Edition.
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