Hi, I needed help to calculate cash budget and CVP analysis

CBH Company CBH Company sells bicycles that they buy from various manufacturers. They are in the process of preparing a Master Budget including the Sales Budget, The Purchasing Budget, the Cash Budget and the Income Statement for 2021. The yearly budget is broken into quarters. The year end is December 31st. 1. What is the breakeven point in units sold? What is the breakeven point in sales dollars? 2. How many units need to be sold to earn an aftertax profit of $ 500,000 Assume a tax rate of 3. What is the margin of safety in $? 30% 4. If sales were to increase by 15% in 2022 from 2021 levels and expense behaviour remains the same as in 2 how much will net income before tax and interest increase by as a percentage. Use operating leverage to 5. If CBH spends $50,000 on an advertising campaign, it believes sales (units) will increase by without any change in average selling price. Should it take on the advertising? Why or why not? 5.00% Additional details: Average estimated selling price per electric bike is $350 . There are 1,840 bicycles in Bike Inventory at the end of 2020 with a value of $ 360,000 At the end of each quarter, CBH Company wishes to have 80% of next quarters estimat units in Bike Inventory. At the end of 20 21 assume 2,000 bikes are required in ending inventory . For each quarter, it is estimated that 7596 of sales will be cash and 25% will be credit sales. of the credit sales, 80% pay in the quarter of the sale and 20% pay in the following quarter. Credit sales from Q4 2020 were $430,000 Assume operating expenses occur evenly throughout the year and are all paid in cash. . For each quarter, 70% of Bike purchases are paid for in cash in the quarter of the purchase and 30% are paid in the following quarter. Total bike purchases in Q4 2020 were $510,000 The expected average purchase price of a bike in 2021 is CBH Company will pay $60,000 S 2 5 0 in dividends in Q4 2021. The cash balance in the bank at the end of 2020 is $ 10,000 CBH Company wishes to maintain a minimum cash balance of $10,000 in the bank for each quarter. Budgeted 2021 sales volumes in units for each quarter are: Q1: 2300 Q2: 2600 Q3: 2500 Q4: 2800 Selling and Administration expenses for the budgeted year are as follows: Sales Wages: Sales wages are a mixed cost (salary and commissions). CBH Company plans on estimating these costs fo based on actual historical data using the high-low method. Here are the total sales in units and the total sales wages expense for the last 4 years. Units sold $ 2020 12585 185130 2019 12905 184975 2018 11385 178225 2017 8175 137145 Fixed Costs: Accounting & professional services Administrative Salaries Advertising Computer costs Depreciation Office Supplies Printing Insurance Property taxes Rent Utilities Total Fixed Costs $ 1800 77000 9000 4200 35000 2300 1400 1200 500 20000 3000 155400 CBH Company will purchase a new store on 1/1/2021 worth $ 500,000 to be paid for in 2 equal payments. The first payment will be in Q1 and the second in Q3. Taxation is 30% on taxable income and paid at the end of Q 4 each year. For Cost of Sales (COS); Add total purchases + Beginning Bike Inventory - Ending Bike Inventory. Interest expense for a quarter is calculated based on the loan balance at the end of the previous quarter and is calculated based on an annual rate of 5.00% The loan balance at the end of 2020 was $ 78,000 CBH Company CBH Company sells bicycles that they buy from various manufacturers. They are in the process of preparing a Master Budget including the Sales Budget, The Purchasing Budget, the Cash Budget and the Income Statement for 2021. The yearly budget is broken into quarters. The year end is December 31st. 1. What is the breakeven point in units sold? What is the breakeven point in sales dollars? 2. How many units need to be sold to earn an aftertax profit of $ 500,000 Assume a tax rate of 3. What is the margin of safety in $? 30% 4. If sales were to increase by 15% in 2022 from 2021 levels and expense behaviour remains the same as in 2 how much will net income before tax and interest increase by as a percentage. Use operating leverage to 5. If CBH spends $50,000 on an advertising campaign, it believes sales (units) will increase by without any change in average selling price. Should it take on the advertising? Why or why not? 5.00% Additional details: Average estimated selling price per electric bike is $350 . There are 1,840 bicycles in Bike Inventory at the end of 2020 with a value of $ 360,000 At the end of each quarter, CBH Company wishes to have 80% of next quarters estimat units in Bike Inventory. At the end of 20 21 assume 2,000 bikes are required in ending inventory . For each quarter, it is estimated that 7596 of sales will be cash and 25% will be credit sales. of the credit sales, 80% pay in the quarter of the sale and 20% pay in the following quarter. Credit sales from Q4 2020 were $430,000 Assume operating expenses occur evenly throughout the year and are all paid in cash. . For each quarter, 70% of Bike purchases are paid for in cash in the quarter of the purchase and 30% are paid in the following quarter. Total bike purchases in Q4 2020 were $510,000 The expected average purchase price of a bike in 2021 is CBH Company will pay $60,000 S 2 5 0 in dividends in Q4 2021. The cash balance in the bank at the end of 2020 is $ 10,000 CBH Company wishes to maintain a minimum cash balance of $10,000 in the bank for each quarter. Budgeted 2021 sales volumes in units for each quarter are: Q1: 2300 Q2: 2600 Q3: 2500 Q4: 2800 Selling and Administration expenses for the budgeted year are as follows: Sales Wages: Sales wages are a mixed cost (salary and commissions). CBH Company plans on estimating these costs fo based on actual historical data using the high-low method. Here are the total sales in units and the total sales wages expense for the last 4 years. Units sold $ 2020 12585 185130 2019 12905 184975 2018 11385 178225 2017 8175 137145 Fixed Costs: Accounting & professional services Administrative Salaries Advertising Computer costs Depreciation Office Supplies Printing Insurance Property taxes Rent Utilities Total Fixed Costs $ 1800 77000 9000 4200 35000 2300 1400 1200 500 20000 3000 155400 CBH Company will purchase a new store on 1/1/2021 worth $ 500,000 to be paid for in 2 equal payments. The first payment will be in Q1 and the second in Q3. Taxation is 30% on taxable income and paid at the end of Q 4 each year. For Cost of Sales (COS); Add total purchases + Beginning Bike Inventory - Ending Bike Inventory. Interest expense for a quarter is calculated based on the loan balance at the end of the previous quarter and is calculated based on an annual rate of 5.00% The loan balance at the end of 2020 was $ 78,000