Toledo Tool Company (TTC) manufactures a line of electric garden tools that are s old in general har

Feb 3rd, 2012
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Toledo Tool Company (TTC) manufactures a line of electric garden tools that are s old in general hardware stores. The company’s controller, Will Fulton, has just received the sales forecast for the coming year for TTC’s three products: hedge clippers, line trimmers, and leaf blowers. TTC has experienced considerable variations in sales volumes and variable costs over the past two years, and Fulton believes the forecast should be carefully evaluated from a cost-volume-profit viewpoint. The preliminary budget information for 20x4 follows: Hedge Clippers Line Trimmers Leaf Blowers Unit sales 50,000 50,000 100,000 Unit selling price $84 $108 $144 Variable manufacturing cost per unit 39 36 75 Variable selling cost per unit 15 12 18 ________________________________________ For 20x4, TTC’s fixed manufacturing overhead is budgeted at $6,000,000, and the company’s fixed selling and administrative expenses are forecasted to be $1,800,0

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