Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

HELLO, I HAVE ONLY 5 hour fot this homework. Please please help me i have to do this homework im so wondering the answers i

HELLO, I HAVE ONLY 5 hour fot this homework. Please please help me i have to do this homework im so wondering the answers i have to compare with my solution. PLEASE!!! image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
I COULDNT FIX IT IF U SOLVE 1 to 5 i can post another question 6-9
Use below information for Questions 1 to 3: Company X manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission at a percent of sales basis. Partial income statement for the year ending Dec 31, 2017, is as follows: Item Amount (TL) 76,000,000 Sales COGS Variable Fixed Selling and marketing expenses Commissions Fixed costs 31,510,000 8,610,000 13,500,000 10,280,000 The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 8.80% and incur additional fixed costs of TL7,500,000. ws Q-1) Calculate the degree of operating leverage at sales TL76,000,000 if the company uses sales agents. Q-2) Assume the company employs its own sales staff. Calculate the change in net income in TL if sales decrease by 10%. Q-3) Calculate the estimated sales volume in sales TL that would generate an identical net income for the year ending December 31, 2017, regardless of whether the company uses sales agents or employs its own sales staff. TIT Use below information for Questions 4 to 6: Company X is a restaurant in Salihli, Manisa. It specializes in southwestern style meals in moderate price range. Ziya Takent, the manager of Company X, has determined that during the last 2 years the sales mix and contribution margin ratio of its offerings are as follows: Item Appetizers Mnin Entrees Desserts Beverages Percent of Total Sales 16% 58% 11% Contribution Margin Ratio 50% 26% 50% 81% Ziya Bey's goal is to generate a target net income of TL 116,000. The company has fixed costs of TL1,051,000 per annum. Q-4) Calculate the sales of Beverages in TL that would be necessary to achieve the desired target net income. Q-5) Ziya Bey believes the restaurant could greatly improve its profitability by reducing the complexity and selling price of its entrees to increase the number of clients that it serves. It would then more heavily market its appetizers and beverages. He is proposing to reduce the contribution margin ratio on the main entrees to 10% by dropping its average selling price. He envisions an expansion of the restaurant that would increase fixed costs by an additional TL588,000. At the same time, he is proposing to change sales-mix as follows: Item Percent of Total Sales Contribution Margin Ratio Appetizers 25% 50% Main Entrees 26% 10% Desserts 10% 51% Beverages 80% Calculate the sales of Beverages in TL that would be necessary to achieve the desired target net income. Q-6) Suppose that Ziya Bey reduces the selling price on entrees and increases the fixed costs as proposed in Question 5, but customers are not swayed by the marketing efforts and the sales mix remains what it was in Question 4. Calculate the sales of Beverages in TL that would be necessary to achieve the desired target net income. uues Bem O Q-7) Company X process materials extracted from mines. The most common raw material that it processes results in three joint products; Product A, Product B and Product C. Each of these products can be sold as is, or each can be processed further and sold for a higher price. The company incurs joint costs of TL180,000 to process one batch 2 of the raw material that produces the three joint products. Company allocates joint costs to products based on Company tonnage of the product. The following cost and sales information is available for one batch of each product: Item Product A Product B Producto Sales Value at Split-Off 260,000 300,000 485,000 Allocated Joint Costs 40,000 60,000 80,000 Costs to Process Further 110,000 81,000 250,000 Sales Value after Process 308,000 400,000 700,000 Determine total net income after deciding which products should be sold at the split-off point and which should be processed further using incremental analysis. Q-8) Company X has an existing machine which is straight line depreciated to process its invoices. Following information pertains to this machine. Amount 100,600 Itern Existing machine original cost Existing machine total useful life Existing machine remaining useful life Existing machine operating cost pa Existing machine salvage value Unit TL years years TL TL 3 105,100 50,000 The company is considering replacing this machine with a new one. New machine will cost TL180,000 and will have 3 years useful life. Per annum operating costs of the new machine are TL80,000. Determine if the company should retain or replace the existing machine ignoring the time value of money. Note enter 1 if the machine is retained, enter 2 if the machine is replaced. aced. Use below information for Questions 9 to 10: Company X operates a small factory in which it manufactures two products: C and D. Production and sales results for last year were as follows: Itern Units sold Selling price per unit Variable cost per unit Fixed cost per unit D 9,000 20,000 96 75 50 40 24 24 For purposes of simplicity, the firm averages total fixed costs over the total number of units produced. The research department has developed a new product (E) as a replacement for product D. Market studies show that the firm could sell 10,000 units of E next year at a price of TL110. The variable cost per unit of Eis TL48. The introduction of E will lead a 11% increase demand for product C and discontinuation of product D. If the company does not introduce the new product, it expects next year's results to be the same as last year's. Q-9) Calculate net income for the next year if the company does not introduce product E. Q-10) Calculate net income for the next year if the company introduces product E. Use below information for Questions 1 to 3: Company X manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission at a percent of sales basis. Partial income statement for the year ending Dec 31, 2017, is as follows: Item Amount (TL) 76,000,000 Sales COGS Variable Fixed Selling and marketing expenses Commissions Fixed costs 31,510,000 8,610,000 13,500,000 10,280,000 The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 8.80% and incur additional fixed costs of TL7,500,000. ws Q-1) Calculate the degree of operating leverage at sales TL76,000,000 if the company uses sales agents. Q-2) Assume the company employs its own sales staff. Calculate the change in net income in TL if sales decrease by 10%. Q-3) Calculate the estimated sales volume in sales TL that would generate an identical net income for the year ending December 31, 2017, regardless of whether the company uses sales agents or employs its own sales staff. TIT

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Integrated Concepts And Procedures

Authors: Donald H. Taylor, G. William Glezen

5th Edition

0471524239, 978-0471524236

More Books

Students also viewed these Accounting questions

Question

Conduct an effective performance feedback session. page 376

Answered: 1 week ago