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Problem 6-2A (Part Level Submission)

Lorge Corporation has collected the following information after its first year of sales. Sales were $900,000 on 90,000 units; selling expenses $250,000 (40% variable and 60% fixed); direct materials $76,100; direct labor $240,000; administrative expenses $270,000 (20% variable and 80% fixed); and manufacturing overhead $357,000 (70% variable and 30% fixed). Top management has asked you to make CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year.



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