All else constant, what would Chesters SG&A/Sales ratio be if the company had spent an additional $1,500,000 for Cake's promotional budget and S750,000 for Cake's sales budget? Select: 1 Save Answer O 11.0% 9.1% O 10.4% 7.8% Asset Turnover Leverage (Assets/Equity) Emergency Loan 5145,310,612 ($9,980,323) ($7,677,563) 58,866,683 5251,543.202 S76,804,530 544,571.147 5101,404,675 5172,847,847 S35,054,089 $12,108,156 19,398.839 $202,256,477 534.256,537 $11,358,971 19,928,556 Cumulative Profit SG&A / Sales Contrib. Margin % 2021 Income Statement S32,222 532,593 S52,593S55,439 $0 $172,848 100.0% Variable Costs 53,375 53.459 S10,707 9,927 $27,469 $70.983 $1,450 99,902 15.9% 41.1% 0.8% 57.8% Direct Material $14,251 514,778 520,604 521,350 $17,804 18,442 S31,81 31,843 S14,419 14,151 S20,780 S23,595 3 72.945 42.2% Period Costs 54,907 55,520 $3,167 3,800 $17,393 52,824 55,200 56,000 10.1% 51,300 51,300 $1,300 1300 3.0% 3.5% 19.2% 23.0% $33,200 55,834 54,949 13,404 15,558 $39,748 finitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the 54,692 $35,054 53.918 $12.133 96.652 $247 $12.108 2.7% 20.3% 2.3% 7.0% 3.896 0.1% 7.0% that was sold. Inventory Carry Cost the cost to carry unsold goods in inventory. Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D Short Term Interest partment expenditures for each product. Admin. Administration overhead is estimated at 1.5% sales. Promotions: The promotion budget for each product. Sales: The sales force budget forLong lemm h product. Other. Charges not included in other categories such as Fees, Write Offs, and OM. The fees include money paid to investment bankers and broke rage firms to issue new Profit Shaing or bonds plus consulting fees your instructor might assess. Write-offs include the loss you t experience when you sell capacity or liquidate inventory as the result of eliminating a Variable Margins 2008 Chester n line. If the amount appears as a negative amount, then you actually made money on he liquidation of capacity or inventory. EBIT: Earmings Before Interest and Taxes. Short Term nterest Interest expense based on last years current debt, including short term debt, long term tes that have become due, and emergency loans. Long Term Interest: Interest paid on 40,0% bonds. Taxes: Income tax based a 35% tax rate. Profit Sharing: Profits shared employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit 8
