Problem
The Sharma Company provides you with the following miscellaneous data regarding operations in 20X9:
Gross profit $40,000
Net profit 15,000
Sales 120,000
Direct material used 35,000
Direct labor 25,000
Fixed manufacturing overhead 15,000
Fixed selling and administrative expenses 12,000
There are no beginning or ending inventories.
Compute (a) variable selling and administrative expenses, (b) contribution margin in dollars, (c) variable manfacturing overhead, (d) break-even point in sales dollars, and (e) manufacturing cost of goods sold.