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Smith Corp. has determined that its contribution margin, (P - MC)/P, is 40%. A recent market research study found the following relationship between adverting outlays and sales revenue.
Advertising Outlays
Gross Revenues from Sales
$500,000
$4,000,000
$600,000
$4,500,000
$700,000
$4,900,000
$800,000
$5,200,000
$900,000
$5,420,000
$1,000,000
$5,600,000
a. What is the profit maximizing level of advertising? Explain.
Total Variable Overheads Variances If Variable Overhead Expenditure Variance = Shs.1, 330 Variable Overhead Efficiency Variance = Shs.320 Then total variable overheads
If question (CA IPCC) is silent which method to follow: avg cost or fifo or lifo?
Advertising expense $17,200 Wages expense-assemblers 36,840 Depreciation expense-machines 21,480 Utilities expense-factory 21,120 Wages expense-lathe operators 23,480 Repair expens
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