Angie’s Pies is a producer of a wide variety of pies that sell in the Midwest in grocery stores and convenience stores. Each pie retails for $8.79. Angie’s sold 1 million pies in the last year. The income statement and balance sheet for the company are in the following tables.

REQUIRED:

a. What is the profit margin in dollar terms and as a percentage?

b. Compute asset intensity.

c. Compute leverage.

d. Compute ROE.

e. Compute contribution margin per unit.

f. Compute annual fixed cost base.

g. Compute breakeven point in sales units.

h. What is the profit earned in one year?

i. What are the days of inventory on hand?

j. What are the accounts receivable days?

k. What is the fixed asset turnover ratio?

l. What is the fixed cost percentage of sales for manufacturing?

m. What is the fixed cost percentage of sales for SG&A?

n. What is the gross margin percentage?

o. What is the selling and administrative cost percentage?

p. Is this firm doing well or not? Why?

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Angie's Pies Income Statement for the Year Ended 12/3/XX Sales $8,790,000 100.0% Less: Variable Costs Manufacturing $2,461,200 28.0% SG&A $1,054,800 12.0% Total Variable Costs $3,516,000 40.0% Contribution Margin $5,274,000 60.0% Less: Fixed Costs Manufocturing $2,500,000 28.4% SG&A $1,200,000 13.7% Total Fixed Costs $3,700,000 42.1% Income Before Tax $1,574,000 17.9% Taxes at 30% $472,200 5.4% Net Income $1,101,800 12.5%