The following information is available for year 1 for Pepper Products:
Sales revenue (170,000 units) | $ | 4,590,000 |
Manufacturing costs | ||
Materials | $ | 271,000 |
Variable cash costs | 230,000 | |
Fixed cash costs | 530,000 | |
Depreciation (fixed) | 1,617,000 | |
Marketing and administrative costs | ||
Marketing (variable, cash) | 683,000 | |
Marketing depreciation | 243,000 | |
Administrative (fixed, cash) | 827,000 | |
Administrative depreciation | 121,000 | |
Total costs | $ | 4,522,000 |
Operating profits | $ | 68,000 |
All depreciation charges are fixed and are expected to remain the
same for year 2. Sales volume is expected to fall by 6 percent, but
prices are expected to rise by 11 percent. Material costs per unit
are expected to increase by 13 percent. Other unit variable
manufacturing costs are expected to decrease by 6 percent per unit.
Fixed cash costs are expected to increase by 5 percent.
Variable marketing costs will change with unit volume.
Administrative cash costs are expected to increase by 6 percent.
Inventories are kept at zero. Pepper Products operates on a cash
basis.
Required:
Prepare a budgeted income statement for year 2. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.)
The following information is available for year 1 for Pepper Products: Sales revenue (170,000 units)...
The following information is available for year 1 for Pepper Products: Sales revenue (210,000 units) $ 3,150,000 Manufacturing costs Materials $ 168,000 Variable cash costs 142,400 Fixed cash costs 337,600 Depreciation (fixed) 1,009,000 Marketing and administrative costs Marketing (variable, cash) 412,400 Marketing depreciation 159,600 Administrative (fixed, cash) 509,200 Administrative depreciation 84,800 Total costs $ 2,823,000 Operating profits $ 327,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected...
The following information is available for year 1 for Pepper
Products:
Sales revenue (210,000 units)
$
3,150,000
Manufacturing costs
Materials
$
168,000
Variable cash costs
142,400
Fixed cash costs
327,600
Depreciation (fixed)
989,000
Marketing and administrative costs
Marketing (variable, cash)
422,400
Marketing depreciation
159,600
Administrative (fixed, cash)
509,200
Administrative depreciation
84,800
Total costs
$
2,803,000
Operating profits
$
347,000
All depreciation charges are fixed and are expected to remain the
same for year 2. Sales volume is expected...
The following information is available for year 1 for Pepper Products: Sales revenue (200,000 units) $ 2,850,000 Manufacturing costs Materials $ 168,000 Variable cash costs 142,400 Fixed cash costs 327,600 Depreciation (fixed) 999,000 Marketing and administrative costs Marketing (variable, cash) 422,400 Marketing depreciation 149,600 Administrative (fixed, cash) 509,200 Administrative depreciation 74,800 Total costs $ 2,793,000 Operating profits $ 57,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected...
The following information is available for year 1 for Pepper
Products:
Sales revenue (240,000 units)
$
3,840,000
Manufacturing costs
Materials
$
226,000
Variable cash costs
192,000
Fixed cash costs
442,000
Depreciation (fixed)
1,348,000
Marketing and administrative costs
Marketing (variable, cash)
570,000
Marketing depreciation
202,000
Administrative (fixed, cash)
687,000
Administrative depreciation
101,000
Total costs
$
3,768,000
Operating profits
$
72,000
All depreciation charges are fixed and are expected to remain the
same for year 2. Sales volume is expected...
The following information is available for year 1 for Pepper Products: Sales revenue (200,000 units) $ 3,000,000 Manufacturing costs Materials $ 168,000 Variable cash costs 142,400 Fixed cash costs 317,600 Depreciation (fixed) 989,000 Marketing and administrative costs Marketing (variable, cash) 432,400 Marketing depreciation 149,600 Administrative (fixed, cash) 519,200 Administrative depreciation 74,800 Total costs $ 2,793,000 Operating profits $ 207,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected...
The following information is available for year 1 for Pepper Products: Sales revenue (200,000 units) $ 2,850,000 Manufacturing costs Materials $ 168,000 Variable cash costs 142,400 Fixed cash costs 327,600 Depreciation (fixed) 999,000 Marketing and administrative costs Marketing (variable, cash) 422,400 Marketing depreciation 149,600 Administrative (fixed, cash) 509,200 Administrative depreciation 74,800 Total costs $ 2,793,000 Operating profits $ 57,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected...
The following information is available for year 1 for Pepper Products: Sales revenue (200,000 units) $ 2,850,000 Manufacturing costs Materials $ 168,000 Variable cash costs 142,400 Fixed cash costs 327,600 Depreciation (fixed) 999,000 Marketing and administrative costs Marketing (variable, cash) 422,400 Marketing depreciation 149,600 Administrative (fixed, cash) 509,200 Administrative depreciation 74,800 Total costs $ 2,793,000 Operating profits $ 57,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected...
The following information is available for year 1 for Pepper Products: $2,760,000 $ Sales revenue (120,000 units) Manufacturing costs Materials Variable cash costs Fixed cash costs Depreciation (fixed) Marketing and administrative costs Marketing (variable, cash) Marketing depreciation Administrative (fixed, Cash) Administrative depreciation Total costs Operating profits 164,000 140,000 323,000 985,000 416,000 147,000 500,000 74.000 52, 749,000 $ 11,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected to fall by...
The following information is available for year 1 for Pepper Products: $2,900,000 $ 168,000 152,400 327,600 989,000 Sales revenue (200,000 units) Manufacturing costs Materials Variable cash costs Fixed cash costs Depreciation (fixed) Marketing and administrative costs Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Administrative depreciation Total costs Operating profits 412,400 149,600 509,200 64,800 $2,773,000 $ 127,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected to fall by 4...
The following information is available for year 1 for Pepper Products: $2,200,000 2.5 points $ Skipped 131,000 112,000 258,000 787,000 Sales revenue (110,000 units) Manufacturing costs Materials Variable cash costs Fixed cash costs Depreciation (fixed) Marketing and administrative costs Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Administrative depreciation Total costs Operating profits eBook 332,000 117,000 398,000 59,000 $2,194,000 $ 6,000 Print ♡ References All depreciation charges are fixed and are expected to remain the same for year 2. Sales...