also comment the results of the anaylsis and give reccomendations in 9b

- Word Search HelpDYMO Label os Review View - 21 ABCDa AaBbcod AaBb C AaBbccc AaB AabecDAoBo Normal 1 No Spac. Heading 1 Heading 2 Title Subtitle Subtle E I N E 8 Erenteg Chocolate Company manufactures and sells a premium chocolate called Premiumhose The following data are available for preparing budgets for PremiumChoco for June through August of 2020. 1. Sales: June 30,000 pounds; July, 56,000 pounds, August 58,000 pounds. 2. Direct materials: each pound of PremiumChoco requires 5 pounds of cacao seeds at a cost of $2.95 per pound and 4 pounds of cane sugar at $.50 per pound. 3. Desired Inventory levels: Type of Inventory May 1 June 1 July 1 August 1 PremiumChoco (pounds) 7,000 8,000 15,000 18,000 cacao seeds (pounds) 6,000 9,000 10,000 13,000 cane sugar (pounds) 5,000 14,000 20,000 25,000 4. Direct labor: direct labor time is 30 minutes per pound at an hourly rate of $20 per hour. 5. Selling and administrative expenses are expected to be .05 cents per unit sold plus $82,000 per month. 6. Your assistant has prepared two budgets: (1) The manufacturing overhead budget shows expected costs to be 150% of direct labor cost (all variable costs). 7. The company uses a 30% markup percentage on total cost 8. Interest Expense is $150,000. 9. Income taxes are expected to be 21% of Income before income taxes. Below is Frontlees income statement for the same period in the prior year: Frontlee Chocolate Company Budgeted Income Statement For the Three Months Ending August 31, 2020 Sales revenue $10,000,000 Cost of goods sold 5,239,000 Gross Profit $4,761,000 Selling and administrative expenses 225,000 Income from operations $4,536,000 Interest expense Income before income tax $4,536,000 Compare the current 3 months with the prior year 3 months using horizontal analysis C osplay Settings celanar Horizontal analysis Frontleg Chocolate Company Condensed Income Statement Aug-20 Increase or (Decrease) Percenta June-Aug- 2019 June-Aug 2020 Amount Sales revenue Cost of goods sold Gross Profit Seling & admin exp Income from operations Interest expense Income before income tax Sb Comments 100 Operating leverage Sales revenue Variable e n AS P9.1A Average: 76517.68235 Count: 30 Type here to search