Question starts from Olive Industires. Both question and answers is given. Below is the question and answer. Olive Industries produced 30,000 units this month and used 36,000 machine hours. The company's static budget for manufacturing overhead costs ...
Below are a year-end actual balance sheet for Year 1 and pro forma balance sheet and income statement for Year 2 for the Grow 'n' Glow Manufacturing Company (000 omitted).
BALANCE SHEET YEAR 1-ACTUAL
BALANCE SHEET YR 2- ...
first of all calculate the contribution sales 500000 - variable cost 300000 =contribution 200000 -fc ? profit 150000 hence to find the fixed cost we have to subtract 200000-150000 = 50000 and it is reduced by 20% hence comes out to be 40000 And ...
Hello Nitesh, Prior to sales & cost adjustment:
Sales - Variable cost - Fixed cost = Operating profit (Pretax Profit)
Fixed costs = $500,000 - $300,000 - $150,000 = $50,000
New sales = $500,000 x (1 + 0.10) = $550,000 ...
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