Question

Please check my answers for the number 8 and please help to solve number 9. Thank you.

102 Budget #7 103 104 105 106 Hint: You will need to compute Variable Cost of Goods Sold for each quarter, which is unit sold times total Variable Standard cost per unit. Computer Accessories Pro Forma Contribution Margin For the year ending December 31, 2019 Second Quarter $286,000 First Quarter $352,000 108 Third Quarter Fourth Quarter Annual Total $319,000 $440,000 $1,397,000 Sales Revenue 110 Less Variable Costs: Cost of Goods sold Selling and Administrative expenses Total Variable costs $249,600 $19,200 $268,800 $202,800 $15,600 $218,400 $226,200 $17,400 $243,600 $312,000 $24,000 $336,000 $990,600 $76,200 $1,066,800 715 Contribution margin $83,200 $67,600 $75,400 $104,000 Less Fixed Costs: Manufacturing Overhead Selling and Administrative Expenses Total Fixed Costs Net Income $40,000 $25,000 $65,000 $18,200 $40,000 $25,000 $65,000 $2.600 $40,000 $25,000 $65,000 $10,400 $40,000 $25,000 $65,000 $39,000 $40,000 $25,000 $65,000 $265,200 123 #8. Using your information from #7, compute the annual contribution margin, the breakeven in dollars for the year, and the margin of safety in dollars for the year. Make sure you are using cell references. Comment Contribution 124 margin ratio 23.64% Breakeven in 125 Dollars $275,000 Margin of Safety in 126 Sales Dollars $1,122,000 Comment on The annual total for Fixed Manufacturing overhead is $40,000 and Selling and administrative expenses is $25,000 and the total fixed expenses for the year 127 your results. comes to $65,000 128 While there is no profit and no loss at sales of $275,000, the sales about the break-even is $1,122,000. 129 130 #9. What if the company is able to lower the fixed Manufacturing overhead costs that uses cash per quarter from $40,000 to $35,000. Which budgets will change and what will be the new annual income? 131 You should only have to change the fixed manufacturing overhead costs that uses cash on this worksheet and all the appropriate budgets will change on the solution worksheet if you have 132 set up your cell references correctly. Please make sure you return the Fixed manufacturing overhead costs that uses cash back to the original number before you submit your solution. 133 134 The following budgets would change: 135 New annual net income: 136 137

Answer 1

New Annual Income= 265,200+(5000 X 4)= $ 285,200

Following Budgets would change:
(a) Cash budget