Donkey Corporation has collected the following information after its first year of sales. Net sales were $1,000,000 on 50,000 units; selling expenses $200,000 (30% variable and 70% fixed): direct materials $300,000; direct labor $170,000; administrative expenses $250,000 (30% variable and 70% fixed); manufacturing overhead $240,000 (20% variable and 80% fixed). Top management ha asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 20% next year.
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