Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. pharoah corporation has collected the following in

Pharoah Corporation has collected the following information after its first year of sales. Sales were...

80.2K

Verified Solution

Question

Accounting

Pharoah Corporation has collected the following information after its first year of sales. Sales were $1,350,000 on 90,000 units; selling expenses $225,000 (40% variable and 60% fixed); direct materials $459,900; direct labor $261,000; administrative expenses $243,000 (20% variable and 80% fixed); and manufacturing overhead $315,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year.

(a)

Your answer is incorrect.

Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year.

(Assume that fixed costs will remain the same in the projected year.)

(1)

Contribution margin for current year

$

Contribution margin for projected year

(2)

Fixed costs for current year

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Match each step of the hydrologic cycle with its description Water moves down a surface...

Biology
Q

One unit of A is made of two units of B, three units of C,...

General Management
Q

Radiation exposure to workers inside a nuclear power plant is Will negatively affect your health...

Biology
Q

QUESTION 3 The chemical bond connecting one nucleotide with the next along one strand of...

Biology
Q

8. When light travels from air to an unknown material at an incident angle of...

Physics
Q

Suppose f x 12x Determine and graph four distinct antiderivatives of f 10 10 8...

Geometry
Q

For a particular diamond mine, 76% of the diamonds fail to qualify as "gemstone grade"....

Basic Math
Q

Consider the subspace of R Create a basis for U 2 U span 0 3...

Algebra
Q

Calculate the distance between (-1/2,2) and (5/3,-2/3).

Algebra
Q

Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The...

Accounting
Q

Ice task 3 2023: COMPLETE THE QUESTIONS BELOW. You will need the completed worksheet...

Accounting
Q

1. (a) Why does OLS estimation involve taking vertical deviations of the points to the...

Finance