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  • Comer Company Produces and Sells Strings of Colorful Indoor Outdoor Lights

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    Charlotte
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    Comer Company produces and sells strings of colorful indoor/outdoor lights for the holidays. It sells the strings to retailers for $8.12 each, with variable costs of $1.87 for materials, $1.70 for labor, $0.57 for overhead, and $0.42 for selling expenses per string. Comer has fixed manufacturing costs of $245,650 and administrative costs of $297,606 annually. Comer expects to sell 225,000 strings next year.

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    Comer Company produces and sells strings of colorful indoor/outdoor lights for the holidays. It sells the strings to retailers for $8.12 each, with variable costs of $1.87 for materials, $1.70 for labor, $0.57 for overhead, and $0.42 for selling expenses per string. Comer has fixed manufacturing costs of $245,650 and administrative costs of $297,606 annually. Comer expects to sell 225,000 strings next year.

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    © All Rights Reserved
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    27 views2 pages

    Comer Company Produces and Sells Strings of Colorful Indoor Outdoor Lights

    Uploaded by

    Charlotte
    Comer Company produces and sells strings of colorful indoor/outdoor lights for the holidays. It sells the strings to retailers for $8.12 each, with variable costs of $1.87 for materials, $1.70 for labor, $0.57 for overhead, and $0.42 for selling expenses per string. Comer has fixed manufacturing costs of $245,650 and administrative costs of $297,606 annually. Comer expects to sell 225,000 strings next year.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    (SOLVED) Comer Company produces and sells strings of

    colorful indoor outdoor lights


    Comer Company produces and sells strings of colorful indoor outdoor lights

    Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday displ
    GET THE ANSWER>> https://solutionlly.com/downloads/comer-company-produces-and-sells-
    strings-of-colorful-indoor-outdoor-lights
    Comer Company produces and sells strings of colorful indoor outdoor lights

    Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display
    to retailers for $8.12 per string. The variable costs per string are as follows:

    Direct materials ................$1.87

    Direct labor ......................1.70

    Variable factory overhead .....0.57

    Variable selling expense .......0.42

    Fixed manufacturing cost totals $245,650 per year. Administrative cost (all fixed) totals
    $297,606. Comer expects to sell 225,000 strings of light next year.

    Required:

    1. Calculate the break-even point in units.

    2. Calculate the margin of safety in units.

    3. Calculate the margin of safety in dollars.

    4. Suppose Comer actually experiences a price decrease next year while all other costs and the
    number of units sold remain the same. Would this increase or decrease risk for the company?

    Comer Company produces and sells strings of colorful indoor outdoor lights
    GET THE ANSWER>> https://solutionlly.com/downloads/comer-company-produces-and-sells-
    strings-of-colorful-indoor-outdoor-lights
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