Reference no: EM131245803
Accounting for Decision Makers Assignment
Directions: Answer all 3 questions. Please submit your work in Word or PDF formats only. You can submit an Excel file to support calculations, but please "cut and paste" your solutions into the Word or PDF file. Be sure to show how you did your calculations.
Question #1
The Samantha Corporation sells only one product. The following is budgeted information for that product:
|
Annual production and sales capacity (units)
|
80,000
|
|
Budgeted selling price
|
$150 per unit
|
|
Variable cost of goods sold
|
$45 per unit
|
|
Fixed manufacturing costs
|
$740,000
|
|
Variable selling and administrative costs
|
$15 per unit
|
|
Fixed selling and administrative costs
|
$700,000
|
Samantha's corporate tax rate is 35%.
a) How many units does Samantha need to sell to breakeven?
b) How much revenue does Samantha need to generate to breakeven?
c) How many units does Samantha need to sell to earn an operating profit (before taxes) of $360,000?
d) How much revenue does Samantha need to generate to earn net income (after taxes) of $585,000?
e) Assume Samantha is currently producing and selling 32,000 units. By what percentage will operating income change if sales increase by 10% from 32,000 units? Be sure to provide figures to justify your answer.
f) Assume Samantha is currently producing and selling 32,000 units. By what percentage will operating income change if sales decrease by 8% from 32,000 units? Be sure to provide figures to justify your answer.
Question #2
A production company is planning to sell tickets to a show for $150 each. It's budgets variable costs are $20 per attendee. Total fixed costs are estimated to be $130,000. The theatre can accommodate up to 800 people because of safety concerns. What should the production company do? Why? Be specific in your response.
Question #3
The following is budgeted information for the Joseph Corporation:
|
|
Product 1
|
Product 2
|
|
Annual production & sales
|
30,000
|
10,000
|
|
Projected selling price
|
$55
|
$120
|
|
Direct Production Cost Information
|
|
|
|
Materials (per unit)
|
$9
|
$16
|
|
Direct Labor (per unit)
|
$15
|
$25
|
Additional information:
• Selling & administrative costs (a mixed cost) are budgeted to be $754,000 at the production and sales listed above. The variable component is $4 per unit (same for each product).
• Manufacturing overhead costs (a mixed cost) are budgeted to be $900,000 at the production and sales listed above. The fixed component is $660,000. Each product uses the same amount of variable manufacturing overhead per unit.
Assuming the budgeted sales mix remains intact, how many units of each product does Joseph need to sell in order to break even?
|
Explain why we have prisons in america
: Explain why we have prisons in America. Discuss why the effective staffing and management of prisons is critical. Also, generalize what special prison populations mean and why we must consider them in our prisons.
|
|
What tax issues should harry and rita consider
: Alpha Corporation is a holding company owned equally by Harry and Rita. What tax issues should Harry and Rita consider with respect to this pending liquidation?
|
|
Write an equation to model the situation
: A photo is 4 inches wide. It is placed inside a frame with a border that is x inches wide. The total width of the photo and the frame is 7 inches. Write an equation to model the situation. Then solve the equation to find the width of the border.
|
|
Calculate debt equity and working capital turnover ratio
: Loan is 87000. 8% debentures= 125000 Equity share capital= 375000 Cost of goods sold= 395600 Current assets= 399000 Current liability= 237000. - Calculate debt equity ratio and working capital turnover ratio.
|
|
How many units does samantha need to sell to breakeven
: How many units does Samantha need to sell to breakeven? How much revenue does Samantha need to generate to breakeven? How many units does Samantha need to sell to earn an operating profit of $360,000?
|
|
What characteristics of that job are sources of motivation
: Consider a specific job within the criminal justice system. What characteristics of that job are sources of motivation, and what characteristics may lead to dissatisfaction or burnout? How would you redesign the job to emphasize the first set of c..
|
|
Calculate the current liabilities and liquid assets
: The current assets of a company are Rs 900000. Its current ratio is 3 and liquid ratio is 1.20 Calculate the current liabilities, liquid assets and inventory.
|
|
Describe the penalties and fines that exist for offenders
: Suggest a change or ratification of the law and explain how your changes will impact society as well as those convicted of the crime. Summarize the challenges the prosecution faced in a trial from your research and whether you believe they could ..
|
|
What is the speed of the dragster at this point
: A second camera filming the dragster is located on the starting line 120 ft away from the dragster at the start of the race. How fast is this camera turning 2 s after the start of the race?
|