Sales and costs for x company in 2018 were as follows: total per unit sales $152,220 $17.20 variable manufacturing costs 54,516 6.16 variable selling costs 23,984 2.71 fixed manufacturing costs 8,230 0.93 fixed selling costs 2,390 0.27 x company expects sales to increase from 8,850 units in 2018 to 9,750 units in 2019. it also expects direct labor costs per unit to decrease by $1.00 and fixed overhead costs to increase by $3,300. what is expected profit in 2019?

The correct answer is 77.047

Explanation:

Firstly, calculate each item

* Revenue (units * Price) = $9750 * 17.20 = 167.700

* Variable manufacturing cost = (Units* (Variable manufacturing cost 2018 – decrease expected for 2019) =  ($9750*(6.16-1)=  50.310

* Fixed Manufacturing cost=  (Fixed manufacturing cost 2018 + Increase expected for 2019) =  (8.230+3300) = 11.530

 * Variable selling cost = 9750*2.71= 26.423

* Fixed selling cost = 2390

                               Units   price   Total  

Revenue                   9,750.00     17.20     167,700.00  

Variable Man           9,750.00       5.16     (50,310.00)

Fixed Man.           9,750.00       1.18     (11,530.00)

Vari Sell.                   9,750.00       2.71     (26,423.05)

Fixed Sell           9,750.00       0.27       (2,390.00)

Profit                                                   77,046.95  

answer; (covenant); good luck

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