Hawle Manufacturing Company Is in the Process of Preparing Its

question 74

Multiple Choice

Hawle Manufacturing Company is in the process of preparing its 2012 budget and is anticipating the following changes: 30% increase in the number of units sold.20% increase in the direct material unit cost.15% increase in the direct labor cost per unit.10% increase in the manufacturing overhead cost per unit.14% increase in the marketing price.7% increase in the administrative expenses.Hawle does not keep any units in inventory.The composition of the cost of finished products during 2012 for materials,direct labor,and factory overhead,respectively,was in the ratio of 3 to 2 to 1.The condensed income statement for 2012 is as follows: What are estimated net sales for 2012,assuming the sales return/gross sales relationship remains constant?

• A)$646,893.
• B)$585,000.
• C)$571,500.
• D)$567,450.

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Definitions:

Agricultural Product Demand

The desire and ability of consumers to purchase agricultural goods, influenced by factors such as price, income levels, and personal preferences.

Year-to-Year Instability

The fluctuation in an economic or financial metric on an annual basis.

Farm Employment

Employment related to agricultural activities including both farming and related work such as processing and distribution.

U.S.

The United States of America, a federal republic consisting of 50 states and a federal district, known for its significant influence on global economics, politics, and culture.