Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 3 - Cost-Volume-Profit Analysis - Assignment Material - Problems - Page 100: 3-36(1)

Answer

Projected Net Income = 770,000 - 407,000 = 363,000

Work Step by Step

Projected Net Income for 2014: Total Variable Cost per Bowl = 18.50 Total Fixed Costs = 214,500 Total Costs = Total Variable Cost + Total Fixed Costs Total Costs = (18.50 \times 22,000) + 214,500 Total Costs = 407,000 Projected Net Income = Expected Sales - Total Costs
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