(Budgeted sales and S&A; other computations) Exotic Statues has projected Cost of Goods Sold for June 1997 of $925,000. Of this amount, $60,000 represents fixed overhead costs. Total variable costs for the company each month average 70 percent of sales. The company’s cost to retail (CGS to sales) percentage is 60 percent and the company normally shows a 15 percent rate of net income on sales. All purchases and expenses (except depreciation) are paid in cash: 55 per¬ cent in the month incurred and 45 percent in the following month. Depreciation is $20,000 per month.

a. What are Exotic Statues’ expected sales for June?

b. What are Exotic Statues’ expected variable selling and administrative costs for June?

c. What is Exotic Statues’ normal contribution margin ratio?

d. What are Exotic Statues’ total fixed costs?

e. Exotic Statues normally collects 45 percent of its sales in the month of sale and the rest in the next month. What are cash receipts and disbursements related only to June’s transactions?

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