Reference no: EM133046789

Question - Nortel Company had the following data (in thousand dollars Direct labor $270) for a given period.

Fixed selling and administrative expenses 150

Variable manufacturing overhead 200

Direct materials 450

Sales 1,500

Operating income 100

Contribution margin 500

Required -

(1) Compute the manufacturing cost of goods sold.

(2) Compute the gross profit.

(3) Compute the variable selling and administrative expenses.

(4) Compute the fixed manufacturing overhead costs.

(5) Compute the break-even point in $ sales.