Problem:
Company X manufactured & sold 1,000 sabres during November. Selected data for this company are as follows:
Sales $100,000
Direct Materials Used 21,000
Direct Labor 16,000
Variable manufacturing overhead 13,000
Fixed Manufacturing overhead 14,000
Variable selling and administrative expenses ???
Fixed Selling & admin. Expenses ???
Contribution Margin 40,000
Operating Income 22,000
There were no beginning or ending inventories.
What were both the variable & mixed selling and admin.expenses for Nov.?
* I have no idea as to how to determine these #’s.
What was the cost of good sold during November?
* Is this sum of beginning inventory + net purchases (but I don’t see any net purchases)
Last question- assume now that the fixed selling admin. Expenses for Nov. amounted to $14,000…..what was the break even point in units for Nov.? How many units should be sold to earn a target operating income of $12,000? What would the selling price be if the company wanted to earn a operating income of $17,000 on the sale of 900 units.