Compute the contribution margin for the current year

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Question - Viejol Corporation has collected the following information after its first year of sales. Sales were $1,440,000 on 120,000 units, selling expenses $210,000 (40% variable and 60% fixed), direct materials $504,000, direct labor $169,400, administrative expenses $276,000 (20% variable and 80% fixed), and manufacturing overhead $382,000 (70% variable and 30% fixed). Top management has asked you for 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.

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

Reference no: EM132743060

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