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The Dogri Company provides you with the following miscellaneous data regarding operations in 20X9: (Click the icon to view thContribution margin Direct labor Direct material Fixed manufacturing overhead Fixed selling and administrative expenses Sales

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INCOME STATEMENT

Particulars $ $
Sales 200,000
Less cost of goods manufactured andsold
Direct material used 109,000
Direct labour 28,000
Fixed manufacturing overhead 10,000
VARIABLE MANUFACTURING OVERHEAD (c) 4,000
Less TOTAL COST OF GOODSMANUFACTUREDAND d SOLD (e) 151,000
Gross profit 49,000
Selling and administrative expenses:
VARIABLE SELLING AND ADMINISTRATIVE EXPENSES (a) 17,000
Fixed selling and administrative expenses 11,000
Total selling and administrative expenses 28,000
Net profit 21,000

a variable selling and administrative expenses is $17,000 (Computed from income statement).

b Contribution marginal = sales - variable costs

Variable cost include direct material, direct labour, variable manufacturing overhead and variable selling and administrative expenses

Variable cost

= 109,000 + 28,000 + 4,000 + 17,000 = $158,000

Contribution margin = 200,000 - 158,000 = $42,000

Contribution margin in dollar is $42,000

c Variable manufacturing overhead is $4,000 (computed from income statement).

d   BREAK EVEN POINT IN DOLLAR

= Fixed cost / contribution margin ratio

Contribution margin ratio = contribution margin / sales

Contribution margin ratio = 42,000 / 200,000 = 0.21

Fixed cost = 10,000 + 11,000 = $22,000

Break even point in dollar

= 22,000 / 0.21 = $104,762

Break even point in dollar is $104,762.

e Manufacturing cost of goods sold is $151,000 (calculated from income statement).

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