The Maxwell Company manufactures and sells a single product. Budgeted data follow: (CPA, adapted)
Forecasted annual sales volume................ 120,000 units Selling price per unit.................................. $25.00
Variable expenses per unit: Raw materials......................................... $11.00 Direct labor............................................. 5.00 Manufacturing overhead......................... 2.50 Selling expenses..................................... 1.30 Total variable expenses per unit................ $19.80
Variable expenses per unit: Raw materials......................................... $11.00 Direct labor............................................. 5.00 Manufacturing overhead......................... 2.50 Selling expenses..................................... 1.30 Total variable expenses per unit................ $19.80
Annual fixed expenses:
Manufacturing overhead......................... $192,000 Selling and administrative...................... 276,000 Total fixed expenses.................................. $468,000
114. Maxwell's break-even point in units is: A) 76,667 B) 90,000 C) 130,000 D) 72,000
115. If Maxwell Company's direct labor costs increase 8 percent, what selling price per unit of product must it charge to maintain the same contribution margin ratio? A) $25.51 B) $27.00 C) $25.40 D) $26.64
File name: The-Maxwell-Company.doc File type: application/msword Price: $5
File name: The-Maxwell-Company.doc File type: application/msword Price: $5
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