# Crane Corporation has collected the following information after its first year of sales. Sales were \$1,600,000 on 100,000 units, selling expenses \$210,000 (40% variable and 60% fixed), direct material

Crane Corporation has unmoved the behindcited counsel behind its earliest year of sales. Sales were \$1,600,000 on 100,000 units, selling expenses \$210,000 (40% capricious and 60% unroving), straightforward materials \$498,000, straightforward work \$296,600, authoritative expenses \$284,000 (20% capricious and 80% unroving), and manufacturing over \$378,000 (70% capricious and 30% unroving). Top conduct has asked you to do a CVP decomposition so that it can mould plans for the hereafter year. It has contemplated that ace sales procure acception by 10% contiguous year.Compute (1) the subscription latitude for the exoteric year and the contemplated year, and (2) the unroving costs for the exoteric year. (Assume that unroving costs procure accrue the similar in the contemplated year.)A

(1)Contribution latitude for exoteric year\$

Contribution latitude for contemplated year\$

(2)Fixed Costs \$

B

Compute the break-even object in aces and sales dollars for the exoteric year.Break-even object in aces

Break-even object in dollars

C

The audience has a target net allowance of \$212,000. What is the required sales in dollars for the audience to as its target?Sales dollars required for target net allowance\$

D

If the audience ass its target net allowance number, by what percentage could its sales decline antecedently it is uncounted at a privation? That is, what is its latitude of insurance ratio? Margin of insurance ratio is what % ?