Question

Requirements: 1) Calculate the cost per cake 2) Create a budgeted Traditional Income Statement and a Contribution Income Statement 3) Calculate the breakeven point in dollars 4) Calculate a target profit in dollars for a profit of $125,000 Task 2 They believe it will cost them $250,000 to purchase the land near Fort Lee and to build a bakery and storefront. Your task is: 1) Calculate Return on Investment if the expected increase in net income, due to opening the new location near Ft. Lee, is $35,000. 2) Calculate Asset Turnover Rate and Margin if the expected sales increased to $450,000 3) Calculate Residual Income if the required rate of return is 15%. Your team will prepare a three page paper that should include your recommendations and calculations. The team will also present to Michelle and Vishayla a PowerPoint presentation of your findings and suggestions. The presentation should be 10 minutes lone with all members presenting equally. A winner will be selected and each team member will receive a prize. Caculate Cost goods sold

please help

Answer 1

Here's the Cost of Goods Sold calculation:

		1 tier wedding cake			2 tier wedding cake			3 tier wedding cake			Large Sheet Cake			Medium Sheet Cake			Small Sheet Cake
		Unit	Price per unit	Total	Unit	Price per unit	Total	Unit	Price per unit	Total	Unit	Price per unit	Total	Unit	Price per unit	Total	Unit	Price per unit	Total
Estimated Annual Sales	431,750.00	125	200.00	25,000.00	300	350.00	105,000.00	325	400	130,000.00	500	125	62,500.00	600	90	54,000.00	850	65	55,250.00
Less: Cost of Goods Sold
Direct Material	79,125.00	125	40.00	5,000.00	300	55.00	16,500.00	325	85	27,625.00	500	25	12,500.00	600	15	9,000.00	850	10	8,500.00
Direct Labor @ $10 per hr (Price per unit = Labor hrs per cake * $ 10 per hr)	99,750.00	125	40.00	5,000.00	300	60.00	18,000.00	325	80	26,000.00	500	40	20,000.00	600	30	18,000.00	850	15	12,750.00
Other Manufacturing Overhead(OH) (apportioned on the basis of direct labor hr)
Supplies	1,500.00			226.00			340.00			453.00			226.00			170.00			85.00
Utilities (Electric) 85% for bakery	2,210.00			334.00			500.00			667.00			334.00			250.00			125.00
Utilities (Gas for Oven)	1,750.00			264.00			396.00			528.00			264.00			198.00			100.00
Water	600.00			91.00			136.00			181.00			91.00			68.00			33.00
Repairs & Maintenance	2,300.00			347.00			521.00			694.00			347.00			260.00			131.00
Rent Expense (80% for bakery)	9,600.00			1,449.00			2,174.00			2,898.00			1,449.00			1,087.00			543.00
Total Cost of Goods Sold	196,835.00			29,711.00			44,566.00			59,422.00			29,711.00			22,283.00			11,142.00
Gross Profit	234,915.00			35,459.00			53,188.00			70,918.00			35,459.00			26,594.00			13,297.00