Solution for QID #89901: 1) Brief Exercise BE18-1 Monthly production costs in Pesa | StudyHelpMe

1) Brief Exercise BE18-1 Monthly production costs in Pesavento Company for two levels of production are as follows. Cost 3,000 units 6,000 units Indirect labor $10,000 $20,000 Supervisory salaries 5,000 5,000 Maintenance 4,000 7,000 Indicate which costs are variable, fixed, and mixed. Indirect labor Variable cost Supervisory salaries Fixed cost Maintenance Mixed cost 2) Brief Exercise BE18-7 Bruno Manufacturing Inc. has sales of $2,200,000 for the first quarter of 2010. In making the sales, the company incurred the following costs and expenses. Variable Fixed Cost of goods sold $920,000 $440,000 Selling expenses 70,000 45,000 Administrative expenses 86,000 98,000 Complete the CVP income statement for the quarter ended March 31, 2010. BRUNO MANUFACTURING INC. CVP Income Statement For the Quarter Ended March 31, 2010 Sales $2,200,000 Variable costs 1,076,000 Contribution Margin 1,124,000 Fixed costs 583,000 Net income $541,000 3) Brief Exercise BE18-11 For Dousmann Company actual sales are $1,200,000 and break-even sales are $840,000. Compute the following (a) the margin of safety in dollars and (b) the margin of safety ratio. Margin of safety in dollars $360,000 Margin of safety ratio 30%