Homework Answers
Ans. 1) Calculation of projected net income for the year of 2017
Sales value (21500X28) = 602000
Less: Variable cost (21500X12.6) = 270900
Contribution = 331100
Less : Fixed Cost = 184800
PBT = 146300
Less: Tax @40% = 58520
Net Income = 87780
2. Calculation of breakeven for the year of 2017
Breakeven point = Total fixed cost /contribution per unit
Total fixed cost = 184800
Contribution per unit (28-12.6) = 15.4
Breakeven point in units = 184800/15.4 = 12000 units
3. Calculation of Net income for the year of 2018
Sales (24000X28) = 672000
Less: Variable cost (24000X12.6) = 302400
Contribution = 369600
Less: Fixed cost (184800+33880) = 218680
PBT = 150920
Less: Tax @40% = 60368
PAT = 90552
4. Calculation of break even point for the year of 2018
Total Fixed cost for 2018 = 218680
Contribution per unit = 15.4 or P/V ratio = 15.4/28X100 = 55%
Breakeven point in revenue for the year of 2018 = 218680/.55 = 397600
5. Calculation of revenue required net income for 2018 will be same as 2017
Desired sales = Fixed cost +Desired profit /P/V ratio
income before tax for 2017 = 146300
Desired sales = (218680+146300)/.55 = 663600
6. Calculation of maximum amount of advertisement we can spent if desired profit is 89502 for 2018
Contribution (24000X15.4) = 369600
Less: Existing Fixed cost = 184800
Less: Additional fixed cost*(difference) = 35630
PBT(89502/.60) = 149170
Tax @40% = 59668
PAT = 89502
With desired profit 89502 company can spent additional for advertisement upto 35630
* calculation of addtional advertisement cost = (369600-149170-184800)= 35630
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0 Requirements x 1. 2. What is the projected net income for 2017? What is the...
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Data Table Variable cost (per bowl) Direct materials Direct manufacturing labor $ 3.50 8.00 1.10 12.60 Variable overhead (manufacturing, marketing, distribution and customer service) $ Total variable cost per bowl Fixed costs Manufacturing $ 18,000 166,800 Marketing, distribution, and customer service $ 184,800 Total fixed costs Selling price Expected sales, 21,500 units Income tax rate $ $ 28.00 602,000 40% Print Print Done Done A.S. Marx and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth...
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quality handmade walnut bowls, has had a steady growth in sales
for the past 5 years. However, increased competition has led Mr.
, the president, to believe that an aggressive marketing campaign
will be necessary next year to maintain the company's present
growth. To prepare for next year's marketing campaign, the
company's controller has prepared and presented Mr. with the
following data for the current year, What is the breakeven point
in revenues...
L.D. Marx and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth...
L.D. Marx and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth in sales for the past 5 years. However, increased competition has led Mr. Marx, the president, to believe that an aggressive marketing campaign will be necessary next year to maintain the company's present growth. To prepare for next year's marketing campaign, the company's controller has prepared and presented Mr. Marx with the following data for the current year, 2017: (Click the icon to view...
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example from different problem
P3-41 (similar to) J.T. Brooks and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth in sales for the past 5 years. Howe campaign will be necessary next year to maintain the company's present growth. To prepare for next year's marketing campaign, the com !!! (Click the icon to view the data.) Read the requirements, Requirement 1. What is the projected net income for 2017? Using the equation method, select the basic...
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3-41 CVP analysis, income taxes. (CMA, adapted) J.T. Brooks and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth in sales for the past 5 years. However, increased competi- tion has led Mr. Brooks, the president, to believe that an aggressive marketing campaign will be necessary next year to maintain the company's present growth. To prepare for next year's marketing campaign, the com- pany's controller has prepared and presented Mr. Brooks with the following data for...
I just need the answers for 3-6 please! thank you :) V.L. Barnes and Company, a...
I just need the answers for 3-6
please! thank you :)
V.L. Barnes and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth in sales for the past 5 years. However, increased competition has led Mr. Barnes, the president, to believe that an aggressive marketing campaign will be necessary next year to maintain the company's present growth. To prepare for next year's marketing campaign, the company's controller has prepared and presented Mr. Barnes with the following...
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R.T. Ko and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth in sales for the past 5 years. However, increased competition has led Mr. Ko, the president, to believe that an aggressive marketing campaign will be necessary next year to maintain the company's present growth. To prepare for next year's marketing campaign, the company's controller has prepared and presented Mr. Ko with the following data for the current year, 2017: (Click the icon to view...
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Data Table Variable cost (per bowl) Direct materials Direct manufacturing labor $ 3.50 8.00 1.10 12.60 Variable overhead (manufacturing, marketing, distribution and customer service) $ Total variable cost per bowl Fixed costs Manufacturing $ 18,000 166,800 Marketing, distribution, and customer service $ 184,800 Total fixed costs Selling price Expected sales, 21,500 units Income tax rate $ $ 28.00 602,000 40% Print Print Done Done A.S. Marx and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth...
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A.S. Marx and Company, a manufacturer of
quality handmade walnut bowls, has had a steady growth in sales
for the past 5 years. However, increased competition has led Mr.
, the president, to believe that an aggressive marketing campaign
will be necessary next year to maintain the company's present
growth. To prepare for next year's marketing campaign, the
company's controller has prepared and presented Mr. with the
following data for the current year, What is the breakeven point
in revenues...
L.D. Marx and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth in sales for the past 5 years. However, increased competition has led Mr. Marx, the president, to believe that an aggressive marketing campaign will be necessary next year to maintain the company's present growth. To prepare for next year's marketing campaign, the company's controller has prepared and presented Mr. Marx with the following data for the current year, 2017: (Click the icon to view...
example from different problem
P3-41 (similar to) J.T. Brooks and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth in sales for the past 5 years. Howe campaign will be necessary next year to maintain the company's present growth. To prepare for next year's marketing campaign, the com !!! (Click the icon to view the data.) Read the requirements, Requirement 1. What is the projected net income for 2017? Using the equation method, select the basic...
3-41 CVP analysis, income taxes. (CMA, adapted) J.T. Brooks and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth in sales for the past 5 years. However, increased competi- tion has led Mr. Brooks, the president, to believe that an aggressive marketing campaign will be necessary next year to maintain the company's present growth. To prepare for next year's marketing campaign, the com- pany's controller has prepared and presented Mr. Brooks with the following data for...
I just need the answers for 3-6
please! thank you :)
V.L. Barnes and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth in sales for the past 5 years. However, increased competition has led Mr. Barnes, the president, to believe that an aggressive marketing campaign will be necessary next year to maintain the company's present growth. To prepare for next year's marketing campaign, the company's controller has prepared and presented Mr. Barnes with the following...
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