Dear team Hip Hedging Hotshots:

You are a team of consultants who assist organizations with budgeting, and you provide data analysis to assist with decision making. You have just been hired as a consultant by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. The organization is also interested in changing the commission structure to see if they can boost profits. To this end, you have worked with accounting and other areas to gather the information assembled below.

question: Using your current cost structure and earring price, if 600,000 earrings are sold in a year, what would be Earrings Unlimiteds net operating income (loss)?

You are a tean of contilaria wte asist orgmianton wh bodgetry mal you proved deta havis io boot proten. To thit end, you tueve woknd with acoourthy ind pher wena im gater te intornition assentled bewion Supplers are paid $4.00 for a peit of karinge. One-hat of a month s punchates in pad tor in the month of Morthy coeraling daperses Ior the chrivery are gren beiow: paybibe in the frat morth of the hlolowng quirte. The ooncavis butance theet as of Marh 34 is gran briow The cuncay murians a mominum cash twisice of 555 soe Ai bolveitg is done w the tegining of a morec aty topumede are made at the end d a morth Twe begrvice of esch monh. The interest rate on these bare in th per morib and for simelaty = wit aswure tha iterest a cot corrpounded Ae the end of the querter the compen woud pey be bari at al sed relaining an least 30,003 in cash Required Deliverables: Trepare a manter budpet for the three-month period ending June 30 . Inchode the following detalue sehedules: The concwy maintins a meremen cash tadence of 357,000 At bonveing is dore at the tegonng of : monet any tepwpmerth ave made at twi end of a morth. wert reiahing an least 857,000 in cash Required Defliverables: Pespare a master budpet for the thee-month period anding June 30. Include the following dusalind schedules! needied to maipen the minimum rash halonce of 55 too 4:41 ) \( 5 G \longdiv { 4 6 } \) Prepare a repoet that m il allow manapement to decide among several alhernatires nelated ts comtisision ahd salary siructure. Repoet bul the followine ieformatice. thil quabter s cosks and orice ansurybions? Breakioves dave in inid tades 40=($12+3)0 Dear team Hip Hedging Hotshots: You are a team of consultants who assist organizations with budgeting, and you provide data analysis to assist with decision making. You have just been hired as a consultant by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. The organization is also interested in changing the commission structure to see if they can boost profits. To this end, you have worked with accounting and other areas to gather the information assembled below. The company sells many styles of earrings, but all are sold for the same price- $12 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings): The concentration of sales before and during May is due to Mother's Day. Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month. Suppliers are paid $4.00 for a pair of earrings. One-half of a month's purchases is paid for in the month of purchase; the other half is paid for in the following month. All sales are on credit. Only 20% of a month's sales are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible. Monthly operating expenses for the company are given below: Insurance is paid on an annual basis, in November of each year. The company plans to purchase $19,500 in new equipment during May and $47,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $20,250 each quarter, payable in the first month of the following quarter. The company's balance sheet as of March 31 is given below: (Jamie) 3. A budgeted income statement for the three-month period ending June 30 . Use the You are a tean of contilaria wte asist orgmianton wh bodgetry mal you proved deta havis io boot proten. To thit end, you tueve woknd with acoourthy ind pher wena im gater te intornition assentled bewion Supplers are paid $4.00 for a peit of karinge. One-hat of a month s punchates in pad tor in the month of Morthy coeraling daperses Ior the chrivery are gren beiow: paybibe in the frat morth of the hlolowng quirte. The ooncavis butance theet as of Marh 34 is gran briow The cuncay murians a mominum cash twisice of 555 soe Ai bolveitg is done w the tegining of a morec aty topumede are made at the end d a morth Twe begrvice of esch monh. The interest rate on these bare in th per morib and for simelaty = wit aswure tha iterest a cot corrpounded Ae the end of the querter the compen woud pey be bari at al sed relaining an least 30,003 in cash Required Deliverables: Trepare a manter budpet for the three-month period ending June 30 . Inchode the following detalue sehedules: The concwy maintins a meremen cash tadence of 357,000 At bonveing is dore at the tegonng of : monet any tepwpmerth ave made at twi end of a morth. wert reiahing an least 857,000 in cash Required Defliverables: Pespare a master budpet for the thee-month period anding June 30. Include the following dusalind schedules! needied to maipen the minimum rash halonce of 55 too 4:41 ) \( 5 G \longdiv { 4 6 } \) Prepare a repoet that m il allow manapement to decide among several alhernatires nelated ts comtisision ahd salary siructure. Repoet bul the followine ieformatice. thil quabter s cosks and orice ansurybions? Breakioves dave in inid tades 40=($12+3)0 Dear team Hip Hedging Hotshots: You are a team of consultants who assist organizations with budgeting, and you provide data analysis to assist with decision making. You have just been hired as a consultant by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. The organization is also interested in changing the commission structure to see if they can boost profits. To this end, you have worked with accounting and other areas to gather the information assembled below. The company sells many styles of earrings, but all are sold for the same price- $12 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings): The concentration of sales before and during May is due to Mother's Day. Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month. Suppliers are paid $4.00 for a pair of earrings. One-half of a month's purchases is paid for in the month of purchase; the other half is paid for in the following month. All sales are on credit. Only 20% of a month's sales are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible. Monthly operating expenses for the company are given below: Insurance is paid on an annual basis, in November of each year. The company plans to purchase $19,500 in new equipment during May and $47,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $20,250 each quarter, payable in the first month of the following quarter. The company's balance sheet as of March 31 is given below: (Jamie) 3. A budgeted income statement for the three-month period ending June 30 . Use the