9-33 CVP AnalysisLawn Master company, a manufacturer of riding lawn mowers, has a projected income for 2013 as follows:
Sales 46,000,000Operating expenses: Variable expenses $32,200,000Fixed expenses $7,500,000Total expenses 39,700,000 Operating profit $6,300,000
9-33 questions:1. Determine the breakeven point in sales dollars.2. Determine the required sales in dollars to earn a before tax profit of $8,000,000.3. What is the breakeven point in sales dollars if the variable cost increases by 12%?
10-55
Kelly Company is a retail sporting goods store. Facts regarding Kelly’s operations are as follows:
– Sales, all on account, are budgeted at $220,000 for December and $200,000 for January.
– Collections are expected to be 60% in the month of sale an= d 38% in the month following the sale.
-Gross margin is 25% of sales.
– A total of 80% of the merchandise sold in a month is purchased in the month prior to the month of sale and 20% is purchased in the mo= nth of sale. Payment for purchased merchandise is made in the month following the purchase.
– Other expenses [selling and administrative] to be paid in = cash each month are $22,600.
– Annual depreciation is $216,000, one-twelfth of which= is reflected as part of monthly operating expenses.Kelly Company’s statement of financial position at the close of business on November 30 as follows:
Kelly CompanyStatement of Financial Position November 30, 2013
Assests
Cash = $22,000Accounts receivable(net of $4,000 = 76,000Allowance for doubtful accounts)
Inventory = 132,000
Property, plant, and equipment(net of $680,000 accumulated depreciation) 870,000=
Total Assets $1,100,= 000
Liabilities and Stockholders Equity
Accounts payable $162,000Common stock = 800,000Retaining earnings = 138,000
Total liabilities and equity = $1,100,000
What Students Are Saying About Us
.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐"Honestly, I was afraid to send my paper to you, but splendidwritings.com proved they are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"
.......... Customer ID: 14***| Rating: ⭐⭐⭐⭐⭐
"The company has some nice prices and good content. I ordered a term paper here and got a very good one. I'll keep ordering from this website."
