It's almost Valentine's Day and Pastry Garden is gearing up. This year they are offering gift baskets at a cost of $125. The variable cost is $60. Pastry Garden pays salaries of $1,300 and the store rent is $1,000 per month. There is also a sales commission of 5% of the sales price. They expect to sell 140 gift baskets.
What is the total revenue from gift baskets?
What is the total cost of goods sold on the gift baskets?
What is the commission per unit?
What is the total commission?
1 | ||
Total revenue from gift baskets | 17500 | =140*125 |
2 | ||
Total cost of goods sold on the gift baskets | 8400 | =140*60 |
3 | ||
Commission per unit | 6.25 | =125*5% |
4 | ||
Total commission | 875 | =140*6.25 |
It's almost Valentine's Day and Pastry Garden is gearing up. This year they are offering gift...
It's almost Valentine's Day and Pastry Garden is gearing up. This year they are offering gift baskets at a cost of $125. The variable cost is $60. Pastry Garden pays salaries of $1,300 and the store rent is $1,000 per month. There is also a sales commission of 5% of the sales price. They expect to sell 140 gift baskets. Using Excel, create a traditional income statement and a contribution margin income statement
Question 3 (1 point) Triton Company's copy department, which does almost all of the photocopying for the sales department and the administrative department, budgets the following costs for the year, based on the expected activity of copies: Salaries (fixed) $82,000 Employee benefits (fixed) 10,000 Depreciation of copy machines (fixed) 10,000 Utilities (fixed) 5,000 Paper (variable, 1 cent per copy) 50,000 Toner (variable, 1 cent per copy) 50,000 The costs are assigned to two cost pools, one for fixed and one...
The Rozas Roofing Company sells seven different styles of roof tiles in stores throughout Southern California. The roof tiles have identical unit costs and selling prices. A unit is defined as a roof tile. Each store has a store manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission. Rozas Roofing is considering opening another store that is expected to have the revenue and cost relationships shown here: UNIT VARIABLE COSTS (per roof...
The Rozas Roofing Company sells seven different styles of roof tiles in stores throughout Southern California. The roof tiles have identical unit costs and selling prices. A unit is defined as a roof tile. Each store has a store manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission. Rozas Roofing is considering opening another store that is expected to have the revenue and cost relationships shown here: UNIT VARIABLE COSTS (per roof...
The stores sell ten different styles of yoga pants with identical unit costs and selling prices. A unit is defined as one pair of yoga pants. Each store has a manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission. The store is trying to determine the desirability of opening another store, which is expected to have the following revenue and cost relationships: Per Pair Unit variable data: Selling price $60 Cost of...
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College Coasters is a San Diego–based merchandiser specializing
in logo-adorned drink coasters. The company reported the following
balances in its unadjusted trial balance at December 1.
Cash
$
9,800
Accounts Receivable
1,900
Inventory
500
Prepaid Rent
540
Equipment
660
Accumulated Depreciation
110
Accounts Payable
1,380
Salaries and Wages Payable
300
Income Taxes Payable
0
Common Stock
6,400
Retained Earnings
2,600
Sales Revenue
14,180
Cost of Goods Sold
7,570
Rent Expense
990
Salaries and...
walk right shoes
The Walk Rite Shoe Company operates a chain of shoe stores. The stores sell ten different styles of inexpensive men's shoes with identical unit costs and selling prices. A unit is defined as a pair of shoes. Each store has a store manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission. Walk Rite is trying to determine the desirability of opening another store, which is expected to have the...
The stores sell ten different styles of yoga pants with identical unit costs and selling prices. A unit is defined as one pair of yoga pants. Each store has a manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission. The store is trying to determine the desirability of opening another store, which is expected to have the following revenue and cost relationships: Per Pair Unit variable data: Selling price $60 Cost of...
The stores sell ten different styles of yoga pants with identical unit costs and selling prices. A unit is defined as one pair of yoga pants. Each store has a manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission. The store is trying to determine the desirability of opening another store, which is expected to have the following revenue and cost relationships: Per Pair Unit variable data: Selling price $60 Cost of...
a. Prepare a contribution margin income statement that summarizes the dealership’s projected operating income. b. Calculate the dealership’s projected break-even point in terms of total revenue (total revenue will equal the sum of product sales revenue and repair services revenue). Calculate the dealership’s margin of safety. c. Assume that the dealership operates under the projections that were initially outlined with the exception of a change in compensation structure for sales personnel. Brad and Lewis intend to eliminate the base salaries...