Question
In: Finance
Table 1 Income Statement Data Units Sold 150,000 Unit Cost $40.00 Price $90.00 Advertising $1,200,000 Consumer...
Table 1 Income Statement Data
| Units Sold | 150,000 |
| Unit Cost | $40.00 |
| Price | $90.00 |
| Advertising | $1,200,000 |
| Consumer Promotion | $1,600,000 |
| Personal Selling | 5 salesperson @ $80,000 each |
| Dealer Promotions | $1,300,000 |
| Product Development | $900,000 |
If unit cost is $40, what is the return on sales (%) if 2 sales people are added and sales increase by 20,000 units (assume other information in Table 1 stays the same)? [img: “Table 1 Income Statement Data.jpg”]
Solutions
Expert Solution
Current Income statement before adding 2 people is calculated in excel and screen shot provided below:
Net profit is $2,100,000.
Return on sale = $2,100,000 / $13,500,000
= 15.56%
Return on sale is 15.56%.
Now, 2 salesperson increases and due to that sales unit increase by 20,000 unit. So, total unit sale become 170,000.
So,new net income is calculated in excel and screen shot provided below:
New Net income is $2,940,000.
Return on sale = $2,940,000 / $15,300,000
= 19.22%
New return on sale is 19.22%.
jeff jeffy answered 2 years agoRelated Solutions
Income Statement data: Advertising expense $ 150,000 Cost of goods sold 3,700,000 Delivery expense 30,000 Depreciation...
Income Statement
data:
Advertising expense
$
150,000
Cost of goods sold
3,700,000
Delivery expense
30,000
Depreciation expense-office
buildings and equipment
30,000
Depreciation expense-store
buildings and equipment
100,000
Income tax expense
140,500
Interest expense
21,000
Interest revenue
30,000
Miscellaneous administrative
expense
7,500
Miscellaneous selling expense
14,000
Office rent expense
50,000
Office salaries expense
170,000
Office supplies expense
10,000
Sales
5,313,000
Sales commissions
185,000
Sales salaries expense
385,000
Store supplies expense
21,000
Retained
earnings and balance sheet data:
Accounts payable
$
194,300...
Niko's manufacturing Income Statement is presented in the next table ( units sold 750,000) Per Unit...
Niko's manufacturing Income Statement is presented in the next
table ( units sold 750,000)
Per Unit Total
Sales $48.00 $36,000,000
Variable Costs
Direct Materials $14.00 $10,500,000.00
Direct Labor $10.00 $7,500,000.00
Factor Overhead $3.50 $2,625,000.00
Selling $1.50 $1,125,000.00
Total Variable Cost $21,750,000.00
Fixed Cost
Overhead $5.27 $3,950,000.00
Selling $4.67 $3,500,000.00
Administrative $6.53 $4,900,000.00
Total Fixed Costs $12,350,000.00
Pre Tax Income $1,900,000.00
Required
Calculate Contribution Margin per unit
Calculate Contribution Margin Ratio
Calculate Break Even Point in units
Calculate Break Even Point...
- Income Statement Data for 20XX: Units produced and sold = 420 Sales ($80 per unit...
- Income Statement Data for 20XX:
Units produced and sold = 420
Sales ($80 per unit selling price) = $33600
Cost of goods sold ($30 per unit, all variable costs) =
$12600
Labor = $0 (Mr. and Mr. Lee were the only ones working and did
not pay themselves)
Advertising fees =$2000
Bank fees = $150
Phone/internet = $1200
Shipping ($3 per unit) = $1260
Utilities = $900
Office supplies = $800
Interest expense on note payable = $350
Depreciation...
Units Sold to Break Even, Unit Variable Cost, Unit Manufacturing Cost, Units to Earn Target Income...
Units Sold to Break Even, Unit Variable Cost, Unit Manufacturing
Cost, Units to Earn Target Income
Werner Company produces and sells disposable foil baking pans to
retailers for $2.50 per pan. The variable cost per pan is as
follows:
Direct materials
$0.30
Direct labor
0.57
Variable factory overhead
0.74
Variable selling expense
0.17
Fixed manufacturing cost totals $136,541 per year.
Administrative cost (all fixed) totals $18,619.
Required:
1. Compute the number of pans that must be sold
for Werner to...
Purchase Units Unit Cost Sold Units Beg.nventory &
Purchase Units Unit Cost Sold Units
Beg.nventory
3000
0.60$
Dec3
4000
0.74$
Dec5
4400
Dec17 2200 0.80$
Dec22 2100
Compute ending inventory and cost of goods sold using moving-
average cost, assuming the Company uses the perpetual inventory
system
Use the following data of Makrel Sales, Inc.: Unit Total Units Units Cost Cost Sold Beginning...
Use the following data of Makrel Sales, Inc.:
Unit
Total
Units
Units
Cost
Cost
Sold
Beginning inventory
18
$6
$108
Purchase on Apr 25
35
7
245
Purchase on Nov 16
13
10
130
Sales
45
?
?
MakrelMakrel
Sales' LIFO cost of ending inventory would be
A.$186.
B.$129.
C.$154.
D.$450.
Date Transaction Units In Unit Cost Total Units Sold Sales Price Total 7/1 Balance 100 4.10...
Date
Transaction
Units In
Unit Cost
Total
Units Sold
Sales Price
Total
7/1
Balance
100
4.10
410
7/6
Purchase
800
4.20
3,360
7/7
Sale
300
7.00
2,100
7/10
Sale
300
7.30
2,190
7/12
Purchase
400
4.50
1,800
7/15
Sale
200
7.40
1,480
7/18
Purchase
300
4.60
1,380
7/22
Sale
400
7.40
2,960
7/25
Purchase
500
4.58
2,290
7/30
Sale
200
7.50
1,500
Totals
2,100
9,240
1,400
10,230
Compute FIFO, LIFO, Average for the perpetual inventory system.
Be sure to do...
Date Transaction Units In Unit Cost Total Units Sold Sales Price Total 7/1 Balance 100 4.10...
Date
Transaction
Units In
Unit Cost
Total
Units Sold
Sales Price
Total
7/1
Balance
100
4.10
410
7/6
Purchase
800
4.20
3,360
7/7
Sale
300
7.00
2,100
7/10
Sale
300
7.30
2,190
7/12
Purchase
400
4.50
1,800
7/15
Sale
200
7.40
1,480
7/18
Purchase
300
4.60
1,380
7/22
Sale
400
7.40
2,960
7/25
Purchase
500
4.58
2,290
7/30
Sale
200
7.50
1,500
Totals
2,100
9,240
1,400
10,230
Compute FIFO, LIFO, Average for the periodic inventory system.
Be sure to do...
MDI Enterprises prepared the following income statement for June: Sales revenue (6,000 units) $150,000 Cost of...
MDI Enterprises prepared the following income statement for
June: Sales revenue (6,000 units) $150,000 Cost of goods sold:
Fixed costs $18,000 Variable costs 30,000 48,000 Gross profit
102,000 Operating expenses: Fixed costs 27,000 Variable costs
12,000 39,000 Operating income $ 63,000 How many units must MDI
sell in order to break-even?
2,500 units
900 units
3,480 units
There is not enough information provided to determine the
answer.
Price per Unit Variable Cost per Unit Units Sold per Year Basic $ 700 $ 220...
Price
per Unit
Variable Cost
per Unit
Units Sold
per Year
Basic
$
700
$
220
700
Retest
1,050
580
200
Vital
4,600
3,100
100
Variable costs include
the labor costs of the medical technicians at the lab. Fixed costs
of $490,000 per year include building and equipment costs and the
costs of administration. A basic "unit" is a routine drug test
administered. A retest is given if there is concern about the
results of the first test, particularly if...
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