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Problem
Kyu Lee Corporation provides you with the following miscellaneous data regarding operations for 20X0 (in thousands of dollars):
Break-even point in sales = $84,000
Direct material used = $29,000
Gross profit = $20,000
Contribution margin = $25,000
Direct labor = $30,000
Sales = $100,000
Variable manufacturing overhead = $5,000
There are no begiinining or ending inventories.
Compute (a) the fixed manufacturing overhead, (b) variable selling and administrative expenses, and (c) fixed selling and administrative expenses.
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Prepare departmental income statements that show the company's predicted results of operations for calendar year 2012
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