chapter 5 number 2

number 3

req 1

req 2

2 Hint The Shirt Works sells a large variety of tee shirts and sweatshirts Steve Hooper, the owner, is thinking of expanding his sales by hiring high school students, on a commission basis, to sell sweatshirts bearing the name and mascot of the local high school. These sweatshirts would have to be ordered from the manufacturer six weeks in advance, and they could not be returned because of the unique printing required. The sweatshirts would cost Hooper $21.00 each with a minimum order of 179 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 179. Since Hooper's plan would not require any additional facilities, the only costs associated with the project would be the costs of the sweatshirts and the costs of the sales commissions. The selling price of the sweatshirts would be $42,00 each. Hooper would pay the students a commission of $6.00 for each shirt sold. Required: 1. What level of unit sales and dollar sales is needed to attain a target profit of $10,740? 2. Assume that Hooper places an initial order for 179 sweatshirts. What is his break-even point in unit sales and dollar sales? (Round your intermediate calculations and final answers to the nearest whole number.) 3. How many sweatshirts would Hooper need to sell to earn a target profit of $12,100? (Round your final answer to the nearest whole Sweatshirts 1 Unit sales needed to attain the target profit Dollar sales needed to attain the target profit 2. Break-even point in unit sal Break-even point in dollar sales 3. Number of sweatshirts sweatshirts sweatshirts 3 Gold Star Rice, Ltd., of Thailand exports Thal rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain Budgeted sales by product and in total for the coming month are shown below: White 489 $ 374,400 112,320 $ 262,080 Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income 100 Product Fragrant Loonzain Total 20 32 100% 100 $ 156,000 100 $ 249,600 100% $ 780,000 30$ 124,800 80 137,280 55 374,400 70 $ 31,200 20 $ 112,320 45 405,680 225,680 $ 179,920 529 Fixed expenses CM ratio = $434,000 0.52 Dollar sales to break-even $225,680 As shown by these data, net operating income is budgeted at $179,920 for the month and the estimated break-even sales is $434,000 Assume that actual sales for the month total $780,000 as planned; however, actual sales by product are: White, $249,600; Fragrant $312,000; and Loonzain $218,400 Required: 1. Prepare a contribution format income statement for the month based on the actual sales data 2. Compute the break-even point in dollar sales for the month based on your actual data, Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution format income statement for the month based on the actual sales data, Gold Star Rice, Ltd. VULLO SE DICORE - 0.52 CM ratio 3 As shown by these data, net operating income is budgeted at $179,920 for the month and the estimated break-even sales is $434,000 Assume that actual sales for the month total $780,000 as planned; however, actual sales by product are: White, $249,600; Fragrant $312,000; and Loonzain, $218,400 Required: 1. Prepare a contribution format income statement for the month based on the actual sales data, 2 Compute the break-even point in dollar sales for the month based on your actual data Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution format income statement for the month based on the actual sales data White Loonzain Total Gold Star Rice, Ltd Contribution Income Statement Product Fragrant % % % % % % % Percentage of total sales % % % % % % % % Required 2 > $ 179,920 3 Net operating income Dollar sales to break-even Fixed expenses $225,680 -$434,000 CH ratio 0.52 As shown by these dota, net operating income is budgeted at $179,920 for the month and the estimated break even salos is $434,000 Assume that actual sales for the month total 5780,000 as planned; however, actual sales by product are: White, $249,600; Fragrant, $312,000; and Loonzain, $218,400. Required: 1. Prepare a contribution format Income statement for the month based on the actual sales cato 2. Compute the break-even point in dollar sales for the month based on your actual data Complete this question by entering your answers in the tabs below. Required 1 Required Compute the break-even point in dollar sales for the month based on your actual data (Do not round intermediate Calculations, Round your answer to the nearest whole dollar amount) Break-even point in doloros Required 1