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Crane Industries carries no inventories. Its product is manufactured only when a customer's order is received. It is then shipped immediately after it is made. For its fiscal year ended October

$31,2025$

$,$

$$Crane$\text{'}$s break

$-$

even point was $

$1\mathrm{.}38$

$$million$.$ On sales of $

$1\mathrm{.}50$

$$million$,$ its GAP income statement showed a gross profit of $

$257$

$,$

$500$

$,$

$$direct materials cost of $

$501$

$,$

$000$

$,$

$$and direct labor costs of $

$610$

$,$

$000$

$.$

$$The contribution margin was $

$195$

$,$

$000$

$,$

$$and variable manufacturing overhead was $

$48$

$,$

$000$

$.$

Calculate the following:

$1$

$.$

$$Variable selling and administrative expenses.

$2$

$.$

$$Fixed manufacturing overhead.

$3$ Fixed selling and administrative expenses. PArt B Ignoring your answer to above part, assume that fixed manufacturing overhead was $$101,000$ and the fixed selling and administrative expenses were $$80,000.$ The marketing vice president feels that if the company increased its advertising, sales could be increased by $19\%.$ What is the maximum increased advertising cost the company can incur and still report the same income as before the advertising expenditure, assuming that the contribution margin ratio remains unchanged?Crane Industries carries no inventories. Its product is manufactured only when a customer's order is received. It is then shipped immediately after it is made. For its fiscal year ended October

$31$

$,$

$2025$

$,$

$$Crane$\text{'}$s break

$-$

even point was $

$1\mathrm{.}38$

$$million$.$ On sales of $

$1\mathrm{.}50$

$$million$,$ its GAP income statement showed a gross profit of $

$257$

$,$

$500$

$,$

$$direct materials cost of $

$501$

$,$

$000$

$,$

$$and direct labor costs of $

$610$

$,$

$000$

$.$

$$The contribution margin was $

$195$

$,$

$000$

$,$

$$and variable manufacturing overhead was $

$48$

$,$

$000$

$.$

Calculate the following:

$1$

$.$

$$Variable selling and administrative expenses.

$2$

$.$

$$Fixed manufacturing overhead.

$3$

$.$

$$Fixed selling and administrative expenses.

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