Compute the variable selling and administrative expenses

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Question - The Sharma Company provides you with the following miscellaneous data regarding operations in 20X9:

Gross profit $40,000

Net profit 15,000

Sales 120,000

Direct material used 35,000

Direct labor 25,000

Fixed manufacturing overhead 5,000

Fixed selling and administrative expenses 12,000

There are no beginning or ending inventories.

Required -

(a) Compute the variable selling and administrative expenses.

(b) Compute the contribution margin in dollars.

(c) Compute the variable manufacturing overhead.

(d) Compute the break-even point in sales dollars.

(e) Compute the manufacturing cost of goods sold.

Reference no: EM132803254

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