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Can someone please help calculate the cost of sales Can someone please help calculate the cost of sales/cost of goods sold for each model including
Can someone please help calculate the cost of sales
Can someone please help calculate the cost of sales/cost of goods sold for each model including services
Quarter 1 (January March) Quarter 2 (April June) Quarter 3 (July- September) Quarter 4 (October- December) Models Freedom 5 11 9 3 Independence 16 33 25 13 Autonomy 18 81 65 16 Total 39 125 99 32 Service hours 590 910 920 530 Storage units 50 30 25 50 North Star's three RV models cater to different price segments. Retail prices for 2017 are: Freedom CAD 165,200 Independence CAD 137,800 Autonomy CAD 85,500 Unit sales are expected to increase by 5.0% in 2018 but RMV has not raised its prices since adopting its new strategy in 2015. The dealer relations representative from North Star estimates that RMV could raise its prices by 2.0% with no change to the units sold. RMV's shop rate is CAD 70 per hour, which is low compared to the industry standard of CAD 90. All parts are resold at cost. Service work is paid for immediately by the customer. Twenty percent of all sales are for cash, but the remainder require financing. RMV offers customers three- and five-year financing plans, but these sales agreements are immediately resold to North Star's financing unit that repackages them and sells them as asset-backed securities. This process takes approximately 60 days, and RMV is paid in full at that time. The dealers have been lobbying North Star to reduce this payment period to 30 days through faster processing. RMV's fifty covered storage lots are rented at CAD 250 per unit per quarter, which RMW promotes as the "best rate in town In the Kamloops market, rates for a similar unit averages CAD 500 per unit and the customer must commit to a one-year lease. Payment is received electronically from customers on the last day of each quarter. Cost of Sales The 2017 wholesale prices for North Star RVs are: Freedom CAD 144,100 Independence CAD 123,800 Autonomy CAD 74,200 RMV purchases all of its RVs on terms net 30 from North Star. RMV maintains inventory levels at 40.0% of next quarter's sales for each model of RV. The dealer relations representative from North Star says other dealers maintain inventory of only 25.0% of next quarter's sales on average. The representative also indicates that North Star's credit terms are sometimes extended to net 60 to aid struggling dealers or help finance expansions. Beginning inventory consists of two Freedom models, seven Independence models, and eight Autonomy models. Wholesale prices were the same as in 2016. Quarter 1 (January March) Quarter 2 (April June) Quarter 3 (July- September) Quarter 4 (October- December) Models Freedom 5 11 9 3 Independence 16 33 25 13 Autonomy 18 81 65 16 Total 39 125 99 32 Service hours 590 910 920 530 Storage units 50 30 25 50 North Star's three RV models cater to different price segments. Retail prices for 2017 are: Freedom CAD 165,200 Independence CAD 137,800 Autonomy CAD 85,500 Unit sales are expected to increase by 5.0% in 2018 but RMV has not raised its prices since adopting its new strategy in 2015. The dealer relations representative from North Star estimates that RMV could raise its prices by 2.0% with no change to the units sold. RMV's shop rate is CAD 70 per hour, which is low compared to the industry standard of CAD 90. All parts are resold at cost. Service work is paid for immediately by the customer. Twenty percent of all sales are for cash, but the remainder require financing. RMV offers customers three- and five-year financing plans, but these sales agreements are immediately resold to North Star's financing unit that repackages them and sells them as asset-backed securities. This process takes approximately 60 days, and RMV is paid in full at that time. The dealers have been lobbying North Star to reduce this payment period to 30 days through faster processing. RMV's fifty covered storage lots are rented at CAD 250 per unit per quarter, which RMW promotes as the "best rate in town In the Kamloops market, rates for a similar unit averages CAD 500 per unit and the customer must commit to a one-year lease. Payment is received electronically from customers on the last day of each quarter. Cost of Sales The 2017 wholesale prices for North Star RVs are: Freedom CAD 144,100 Independence CAD 123,800 Autonomy CAD 74,200 RMV purchases all of its RVs on terms net 30 from North Star. RMV maintains inventory levels at 40.0% of next quarter's sales for each model of RV. The dealer relations representative from North Star says other dealers maintain inventory of only 25.0% of next quarter's sales on average. The representative also indicates that North Star's credit terms are sometimes extended to net 60 to aid struggling dealers or help finance expansions. Beginning inventory consists of two Freedom models, seven Independence models, and eight Autonomy models. Wholesale prices were the same as in 2016Step by Step Solution
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