Bethel University Unit 7 Cost Valume Profit Analysis

1200 words total. 3 APA cited References and reference list. NO PLAGIARISM PLEASE !!!

Richardson Corporation plans to increase its advertising budget by 20% next year. The company currently spends $15,000 on advertising costs. In addition to advertising, Richardson spends $50,000 per year for other fixed costs and $10 per unit for variable costs. If Richardson anticipates producing 30,000 units next year, what will be next year’s total costs?

1. A. Calculate total estimated costs for next year.

2. A. Calculate Preferred’s net operating income assuming the company uses variable costing.

3. B. Calculate Preferred’s net operating income assuming the company uses absorption costing.

FOR QUESTION 4, A TOTAL OF 250 WORDS. 2 APA CITED REFERNCES AND REFERENCE LIST.NO PLAGIARISM PLEASE !!! 

4. What is the concept of break-even analysis? When considering break-even, what is the margin of safety?

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