Compute total annual sales

Assignment Help Accounting Basics

Reference no: EM132471280

Assignment Task:

Taking the unmovable product mix provided above compute total annual sales that the company must generate to break even.

Question 1: Compute total annual sales that the company is generating currently to earn operating income of $350,000.

Question 2: Given that the shop floor's capacity is outlasted (100%) with 24 workers, 660.000,- € p.a. or 42.000 production hours, how can SkiValley achieve their plan of 10% minimum profit margin?

Question 3: As SkiValley's marketing manager, what marketing strategy would you pursue to help the company maximize its profit.

Question 4: For the year 2021, the official forecasts publish that direct labor rates will increase due to new collective bargaining agreement by 2.5% to offset inflation. The direct materials for the boards and skis will drop an average of 3%, aluminum (main component of the poles) by 1.5%.

Question 5: How do these new numbers affect the 2021 budget 10% profit margin? Remember the maximum capacity of 8 direct workers per shift.

Question 6: Prepare a quarterly budget for 2021 (Q1 to Q4) including the line items shown above for each and every product line & totals. Try to accommodate bottlenecks and seasonal sales impact.

Attachment:- SkiValley Corp.rar

Reference no: EM132471280

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