Assumptions: Prices and per unit variable costs are expected to remain the same throughout the quarter.

Angie just received a standing order for an additional 400 trays per month starting in October. In addition, Angie expects Sales to increase (based on Septembers sales) an additional 16% per month in October and November. In December, sales are expected to increase by 40% over Novembers sales due to increased holiday restaurant demand (note the advertising expense below). Sales are expected to remain at the December level in the following quarter. The Empanada price per tray is expected to remain the unchanged in the quarter.

Direct Materials: Costs per unit of direct materials are expected to remain the same throughout the quarter. Because of problems procuring certain ingredients Angie would like to have 5% of her ingredients (spices, flour, shortening, etc) needed to prepare that months empanadas on hand at the beginning of each month. Angie also would like to have 50% of the trays she will need on hand at the beginning of each month. Assume that Angie has no inventory of ingredients or trays on hand at the end of September.

Direct Labor: Base the Labor budget on the current quarters information.

Manufacturing Overhead: (Rent, Utilities) Angies rent will increase 15% because she will need to rent additional space and equipment to meet the anticipated increase in demand. Utility rates are expected to remain the same for the coming quarter. Variable Manufacturing Overhead should be applied based on trays of empanadas produced.

S&A expense: (delivery, advertising) Angie is budgeting for $500 a month in advertising expense for the coming quarter.

Because of increased fuel prices in the coming quarter, variable delivery costs are expected to rise 20%. Monthly Delivery expenses include depreciation on a van Angie invested into the business. Details on the van:

Value at the time of donation: $9,400.

Expected useful life: 3 years. Date of Donation April 1.

Salvage value: $1,120

Accumulated depreciation to September 30: $1,380

Finished Goods Inventory assumptions: Angie would like to have 6% (approximately two days sales) of expected demand on hand at the end of each month. Currently Finished Goods inventory is 0.

Cash flow assumptions: Sales are 40% cash and 60% credit. Credit receivables are expected to be paid in full the next month. No allowance is made for uncollectable accounts. Angies current cash balance is equal to the amount listed on the attached beginning balance sheet. Angie started the business with a cash investment of $8,000 and the donation of the delivery truck.

All Purchases of ingredients and trays are on credit. Angie pays for ingredients and trays in full the next month. Base current Accounts Payable on Septembers purchases (see the balance sheet).

Because of cash flow problems encountered in the previous quarter Angie arranged for a $30,000 line of credit from a local bank at 6% annual rate of interest on the principle. In consultation with her accountant Angie decided she would like to have a $9,000 cash balance at the end of each month. Based on anticipated balances in the budget Angie borrows all money in $1,000 increments at the beginning of the month and if possible will repay all money plus any interest owed at the end of the Quarter.

Your Variable Costing Income Statement from the previous quarter can be found at the bottom of the questions and figures spreadsheet.

After completing the Static budget develop a Pro-forma Income Statement and Balance Sheet for Angies Empanadas for the next quarter (October-December).

Your Static Budget should include budgets for:

Sales and Cash collections from sales

Production

Materials: ingredients and trays

Cash Disbursements for materials

Direct labor

Manufacturing Overhead

Selling & administrative expenses

Cash Budget

Cost of Good Manufactured and Cost of Goods sold

Proforma Income Statement (use format included) Variable Costing

Proforma Balance Sheet (use format included)

Build the budgets by linking the worksheets together with formulas using the assumptions provided. You will need to determine inventory amounts (materials and Finished Goods, not work-in-process) for the Balance Sheet and to determine the COGS. Use variable cost of goods sold. Please note that delivery costs are S & A costs. Also please note that depreciation (a part of delivery costs) is a non cash cost.

make sure it is not just a typed document (has links and formulas).

However, since I couldn't uplaod Excel files nor word files that work.

I took screen shots of everything and I hope the answers will be in excel sheets

Input your M number in the Name &Mnumber spreadsheet and use the figures Cost_Volume_Profit Analysis & the behavior of costs Price per tray $11.50 Over the past six months Angie s incurred the following costs and made the sales revenues elated to her empanada business Empanada Ingredients Labor Costs Sales Travs Rent Utilities Deliver y Profit Quantity April 3,450.00 $ 690.00 1,207.50$ 90.00 1,000.00 $ 112.00 700.00(349.50) May $ 4,025.00$ 805.00$1,408.75 $105.00 $1,000.00$ 114.00 $ 750.00(157.75) June $5,175.00$ 1,035.00 $1,811.25$ 135.00$1,000.00$118.00 $ 850.00 225.75 July 5,750.00 $1,150.002,012.50$150.00 $1,000.00$120.00 $900.00417.50 August $7,475.00 $ 1,495.00 $ 2,616.25 195.00 1,000.00 126.00 $1,050.00 992.75 September12,650.002,530.00$4,427.50 330.00$1,000.00$144.00 1,500.00 2,718.50 734.00$5,750.00$ 3,847.25 300 350 450 500 650 1,100 3,350 Totals $ 38,525.00$7,705.00 $13,483.75 $1,005.00$ 6,000.00 2.30 $ 4.03 $ 0.30 slope VCu Int FC Mo 0.04$ 1.00 Answer the following questions 100 400 Month Angie first earns a profit? Variable cost items? Mixed Cost items? Fixed Cost item? Ingredients Utilities Rent Labor Delivery Trays Contribution Margin per tray? $3.84 Contribution Margin percentage? 33.3%