NEXT Proolem 11 breakeven point was 140 mllion On sales of 1

NEXT Proolem 11- break-even point was $1.40 mllion. On sales of $1.30 willion, R he contrloution marin wes $20,000, and variable mandracturing overbead was $48,000. s income statement showed a gross profit of $208,000, direct materials cost of $410,000, and direct labor costs of alute lowing: (Round intermediate caloulations to 2 decimal places e.g2.25 and final answers to 0 decimal places, e.g. 1,225.) 1. Variable seing and admiistrative expenses. Posed manndactueg ovethad Fae veiling aundwntret expenses. t, , re om om e reased ts betsng, sales ould be ecreased by 20%, what is the maximum meased advertising cost the company can incur and stin report the same income as before the divertoing expenditure?

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Sales	$ 1,300,000
Less: Gross profit	$   (208,000)
Less: Direct material	$   (410,000)
Less: Direct labour	$   (502,000)
Less: Variable manufacturing overhead	$     (48,000)
Fixed manufacturing overhead	$     132,000