# X-Ray Manufacturing has the following revenues

Problem 1X-Ray Manufacturing has the following revenues and costs:SalesFixed overheadDirect laborDirect materialsSelling expensesAdministrative expenses Variable overhead Interest expense Income tax\$4,340,000\$1,020,000\$458,000\$620,000\$365,000\$489,000 \$224,000 \$118,000 \$366,000Prepare a contribution margin income statement with both dollars and percentages of sales displayed.Problem 2Presented below are selected budget data items for Globe Corporation for a three-month period:SalesDirect materialsDirect laborVariable overheadFixed overheadSelling and admin. costsFixed loan paymentsOCTOBER\$820,000\$123,000\$90,000\$65,600\$140,000\$312,000\$155,000NOVEMBER\$780,000\$119,000\$85,000\$62,400\$140,000\$310,000\$155,000DECEMBER\$850,000\$125,000\$96,000\$68,000\$140,000\$315,000\$155,000Sales were \$770,000 in August and \$790,000 in September. Material usage was \$115,000 in August and \$118,000 in September. All sales are on account, and accounts receivable is historically collected 15% in the month of sale, 65% in the month following sales, and the remainder two months after the sale. Materials are paid for 40% in the month used and 60% the following month. All other expenses are paid in the month incurred. The cash balance was \$35,000 at the beginning of October, and management wants to determine if the company will have enough cash to pay a year-end bonus.Prepare a three-month cash budget, including a schedule for cash collections and material payments.Problem 3Olympic Products Inc. manufactures and distributes barbecue grills. The company normally sells 1,000 of these grills each month for a price of \$140 each. The material cost for a grill is \$44 and the direct labor is \$22. The variable overhead cost is \$13 per grill, and the fixed overhead cost is \$30,000 per month. A contract manufacturer has approached the company and offered to supply the grills ready to sell for \$85 each. The company management believes that if it accepts this offer, Olympic Products will be able to lease unused factory space for \$10,000 per month.Perform a make-versus-buy analysis.