Question

United States Motors Inc. (USMI) manufactures automobiles and light trucks and distributes them for sale to consumers through franchised retail outlets. As part of the franchise agreement, dealerships must provide monthly financial statements following the USMI accounting procedures manual. USMI has developed the following financial profile of an average dealership that sells 1,700 new vehicles annually AVERAGE DEALERSHIP FINANCIAL PROFILE Composite Income Statement Sales Cost of goods sold $34,000,000 28,856,00e $ 5,950,000 Gross profit Operating costs Variable Mixed Fixed 977,500 2,618,000 2,101,200 $253, 300 Operating income

I need the answer to number 1.

Answer 1

Sole AVERA GE DEALERSHIP FINANCIAL PROFILE. Composite Income Statement Particula's Sade's Cost of Ginod s Sald Amount. $34,000,000 $(28.050,000) $ 5.950,000 Gross Profit operating Cost.s - Variab le Mixed ४ व Dperating ucome $977,500) $2618.000) $ Q,101,200) $253,300 * Assuming that all purchaued of automolailis for resade Cost by Goodl's Sad represantie 'Varieble Cozt þrice. لبم Number of uuit Sold Selling Price per Uuit => $ 34,000,000 1700 Uwit. $20,000Per uuit

Variable Cost ber vuit => Vagiabıle Cuzt> :(Cost oy Good's Saldt Vamiabule Operating Cast + g0%024 MixëdDpenating Csty $28,050, DO0 + $977,50d+ 90%07 $2,618,000 $28,050,000t $977,500+ $2356,200 $ 31,383, 700 Totaul Variabde Cest Number o4 Uuit Sold Variable Custper lluit = $31,383, 700 1700 Uuit $18,461 Per Uuit. fixed Cost Fixed operating Cor t+ 10% of MIxedoperakig Cat $2,101,200 t l0%o 07 26 18,000 $ 2,101,200 t $261,800 $2,363,000

the Unit Sold is 2 300 vuit's than the Compesite deadenship pofit is- Composite InCome Statemeu- al- 23 00 vuit Particulu's Sad's less Vaniabele Cost. Coutribution less. fixed Cost Ampuul $46,000,000 $(42460,800) $3,539,700 $ (2,363,000) Profit $1176,700 Worlking dotes- Sale's => No, of uw't Sold X Uuit Selling price. 2 300 Uuit X $20,0 $46000,000 Variable lost=> No,04 Uuit Soded x Uu't Variabule Cost 000 %3D 2300 Uuit X $ 18,461 $ 42,460,300