HW 17 - 100000 CM 700000 560000 700000 FMOH 600000 600000...

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Jack Meehan 10/30/2007 Accounting 152 P7-14, P7-17, P12-33 Section 11 P7-14 Unit Absorption Variable DM 6 6 DL 12 12 VMOH 4 4 FMOH 8 0 Total 30 22 I/S May June Sales 1040000 1360000 Variable unit cost 572000 748000 Variable SGA 78000 102000 CM 390000 510000 0.38 Fixed MOH 240000 240000 Fixed SGA 180000 180000 Net Income -30000 90000 Absorption NI 2000 58000 + Diff in COGS 32000 32000 Variable NI -30000 90000 They actually lost 30000, so the break even point is 420000/22 =  1120000 50909.09 P7-17 Year 1 Year 2 Year 3 Sales 1000000 800000 1000000 Var costs 200000 160000 200000 Var SGA 100000 80000
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Unformatted text preview: 100000 CM 700000 560000 700000 FMOH 600000 600000 600000 FSGA 70000 70000 70000 Net Income 30000-110000 30000 Absorption DL DM AND MOH 4 FMOH 12 unit cost 16 Absorption NI 30000 90000-20000 Difference-200000 150000 Var NI 30000-110000 30000 The absorption method in Year 2 was higher since production was higher than sales in Year 3, the net income was less since sales were higher than production. P12-33 I/S Sales 3500000 Var Expenses 1721000...
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This homework help was uploaded on 04/07/2008 for the course ACCT 152 taught by Professor Bayak during the Spring '07 term at Lehigh University .

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HW 17 - 100000 CM 700000 560000 700000 FMOH 600000 600000...

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