Suppose cook pluscook plus manufactures cast iron skillets. one model is a 10-inch skillet that sells for $ 26$26. cook pluscook plus projects sales of 725725 10-inch skillets per month. the production costs are $ 11$11 per skillet for direct materials, $ 4$4 per skillet for direct labor, and $ 3$3 per skillet for manufacturing overhead. cook pluscook plus has 6060 10-inch skillets in inventory at the beginning of july but wants to have an ending inventory equal to 2525% of the next month's sales. selling and administrative expenses for this product line are $ 1 comma 700$1,700 per month. cook pluscook plus is budgeted to produce 846846 skillets in july. compute the budgeted gross profit for july.

Vortex company operates a retail store with two departments. information about those departments follows. department a department b sales $ 800,000 $ 450,000 cost of goods sold 497,000 291,000 direct expenses salaries 125,000 88,000 insurance 20,000 10,000 utilities 24,000 14,000 depreciation 21,000 12,000 maintenance 7,000 5,000 the company also incurred the following indirect costs. salaries $36,000 insurance 6,000 depreciation 15,000 office expenses 50,000 indirect costs are allocated as follows: salaries on the basis of sales; insurance and depreciation on the basis of square footage; and office expenses on the basis of number of employees. additional information about the departments follows. department square footage number of employees a 28,000 75 b 12,000 50 required: 1. determine the departmental contribution to overhead and the departmental net income for department a and department b.