(20 PTS)	You are employed by the prune processor, Prudent's Prunes, which sells 3 products:
Pitted prunes
Prune Juice
Prune Fudge
Budgeted sales of each product and the breakeven point were shown at the beginning of the year in a Variable format Income Statement.
This is a new company, so projections are difficult.	PRUDENT'S PRUNES

Pitted Prunes Prune Juice Prune Fudge Totals Percentage of sales 47% 28% 25% 100% Sales $ 94,000.0 100% $ 56,000.0 100% $ 50,000.0 100% $ 200,000 100% Variable Costs $ 56,160.0 59.74% $ 39,200 70.00% $ 10,600 21.20% 105,960 52.98% Contribution Margin $ 37,840.0 40.26% $ 16,800 30.00% $ 39,400 78.80% 94,040 47.02% Fixed Expenses 75,400 Net Operating Income (Loss) $ 18,640.00

Your task is to 1) prepare a contribtuion/variable income statement in the format shown above, using the actual sales figures. Recall that the relationship between sales and variable costs does not change, regardless of the volume of sales. Include the relevant %s, similar to the 47%, 28%, 25%, 100% in the budgeted statement.

2) calculate the new breakeven point (sales dollars) using the actual numbers.

3) Write an explanation to company owner, Prudent Plum, explaining how the sales projections of $200K could be met, yet profitability falls short.

4) Prudent's sister, Precious, is co-owner of the company. Her expertise is fudgemaking, not accounting. She exclaimed: "Who cares about all these numbers in charts!? The prune fudge is our highest

yielding product so let's just concentrate our efforts on producing and marketing this delicacy.

Give me one good reason we shouldn't just focus on prune fudge!" You responded, "I'll give you two good reasons?. " Complete the response. Spelling, grammar, and punctuation will be graded. ?

SALES MIX (20 PTS) You are employed by the prune processor, Prudent's Prunes, which sells 3 products: Pitted prunes Prune Juice Prune Fudge Budgeted sales of each product and the breakeven point were shown at the beginning of the year in a Variable format Income Statement. This is a new company, so projections are difficult. PRUDENT'S PRUNES BUDGETED INCOME STATEMENT FOR YEAR ENDED XX/XX/XX Pitted Prunes Percentage of sales Sales Variable Costs Contribution Margin Fixed Expenses Net Operating Income (Loss) $ $ $ 47% 94,000.0 56,160.0 37,840.0 Prune Juice 100% 59.74% 40.26% BE point in sales dollars 28% $ 56,000.0 $ 39,200 $ 16,800 Prune Fudge 100% $ 70.00% $ 30.00% $ Fixed Exp/CM Ratio $ 25% 50,000.0 10,600 39,400 160,357.29 At the end of the year, the actual sales figures were as follows: Total sales were $200,000 unchanged. But looking at sales by product, the results were: Pitted prunes $80,000 Prune Juice $108,000 Prune Fudge $12,000 $200,000 Your task is to 1) prepare a contribtuion/variable income statement in the format shown above, using the actual sales figures. Recall that the relationship between sales and variable costs does not change, regardless of the volume of sales. Include the relevant %s, similar to the 47%, 28%, 25%, 100% in the budgeted statement. 2) calculate the new breakeven point (sales dollars) using the actual numbers. 3) Write an explanation to company owner, Prudent Plum, explaining how the sales projections of $200K could be met, yet profitability falls short. 4) Prudent's sister, Precious, is co-owner of the company. Her expertise is fudgemaking, not accounting. She exclaimed: "Who cares about all these numbers in charts!? The prune fudge is our highest yielding product so let's just concentrate our efforts on producing and marketing this delicacy. Give me one good reason we shouldn't just focus on prune fudge!" You responded, "I'll give you two good reasons.... " Complete the response. Spelling, grammar, and punctuation will be graded. Totals 100% 100% $ 200,000 21.20% 105,960 78.80% 94,040 75,400 $ 18,640.00 100% 52.98% 47.02% Prune fudge may seem like a joke. Prune brownies are not. A bonus recipe for you. I make and eat these. Healthy Prune Brownies from Professor Crawford Ingredients 1 cup unsweetened cocoa powder 1/4 tsp cayenne (I use half that) 2 tsp cinnamon 1/2 cup milk (any %) or coconut milk, adding more milk as needed for blending 2 Tablespoons melted butter or margarine, can be omitted for extra healthy brownies 1 cup chopped pitted prunes (or raisins) 1 cup oats (5 minute kind, not steel cut) Add sugar, honey, or Stevia to taste (the prunes offer natural sweetness not to mention fiber) Any kind of nuts, or flax or chia seeds if wanted Pam spray or wax paper Directions In a food processor (or blender which is what I have) blend the the cocoa powder, cayenne, cinnamon, milk, melted butter/margarine , and prunes until a smooth paste forms. Add the oats and optional flax or chia seeds and more milk if needed and pulse until oats are incorporated. Nuts can be added at this point to the batter after the blending is done or they can pressed into the top of the batter after the next step. Transfer the mix into a square or rectangular pan or dish, that either been sprayed with Pam or lined with wax paper. Press the mixture into the pan/dish. Refrigerate until firm. Cut into squares before serving. These are not nearly as good as the Ghirardelli mix, or the brownies at your corner bakery or at Starbucks, but they are a healthy alternative. For more taste and less healthiness, frost them