Shaw Landscapes (SL) develops and sells plans for various types of gardens and outdoor spaces. Customers...
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Shaw Landscapes (SL) develops and sells plans for various types of gardens and outdoor spaces. Customers use the plans to install various landscape features such as gardens, ponds, walls, etc. The operating budget for 2023 called for 3,000 units to be produced and sold. Budgeted Income per unit - FY2023 Revenue $2,400 Direct Labor (13 hrs @ $50 per hr) $650 Variable overhead (production) $225 Fixed overhead (production) $300 Gross Margin $1,225 Marketing and administrative costs (all fixed) $750 Operating Income per unit before taxes $475 Tax Expense @ 21% $99.75 Operating Income per unit after taxes $375.25 What are the expected total fixed costs for the year? Shaw Landscapes (SL) develops and sells plans for various types of gardens and outdoor spaces. Customers use the plans to install various landscape features such as gardens, ponds, walls, etc. The operating budget for 2023 called for 3,000 units to be produced and sold. Budgeted Income per unit - FY2023 Revenue $2,400 Direct Labor (13 hrs @ $50 per hr) $650 Variable overhead (production) $225 Fixed overhead (production) $300 Gross Margin $1,225 Marketing and administrative costs (all fixed) $750 Operating Income per unit before taxes $475 Tax Expense @ 21% $99.75 Operating Income per unit after taxes $375.25 If SL achieves its budget, what is the expected total profit this year after taxes? Shaw Landscapes (SL) develops and sells plans for various types of gardens and outdoor spaces. Customers use the plans to install various landscape features such as gardens, ponds, walls, etc. The operating budget for 2023 called for 3,000 units to be produced and sold. Budgeted Income per unit - FY2023 Revenue $2,400 Direct Labor (13 hrs @ $50 per hr) $650 Variable overhead (production) $225 Fixed overhead (production) $300 Gross Margin $1,225 Marketing and administrative costs (all fixed) $750 Operating Income per unit before taxes $475 Tax Expense @ 21% $99.75 Operating Income per unit after taxes $375.25 What are the expected total fixed costs for the year? Shaw Landscapes (SL) develops and sells plans for various types of gardens and outdoor spaces. Customers use the plans to install various landscape features such as gardens, ponds, walls, etc. The operating budget for 2023 called for 3,000 units to be produced and sold. Budgeted Income per unit - FY2023 Revenue $2,400 Direct Labor (13 hrs @ $50 per hr) $650 Variable overhead (production) $225 Fixed overhead (production) $300 Gross Margin $1,225 Marketing and administrative costs (all fixed) $750 Operating Income per unit before taxes $475 Tax Expense @ 21% $99.75 Operating Income per unit after taxes $375.25 If SL achieves its budget, what is the expected total profit this year after taxes?
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