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I have a answer of 1 to 4 with me already so please solve 5 to 9. MODULE 3: Profit decisions are important to the

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I have a answer of 1 to 4 with me already so please solve 5 to 9.

MODULE 3: Profit decisions are important to the Martins. These decisions not only arise from understanding the market, pricing policies and margins the managers need to understand the tools and elements they need to consider as they target either profit levels or their ability to manage the elements of the profit calculation. For example, if Computech is operating at a loss or below BREAK EVEN then understanding how they might be able to manage costs, or volumes to generate profits becomes very important. BREAKEVEN analysis can help the Martins and CompuTech decide on any of the following: how many units they need to sell, what price should they sell at (and compared to what the market will bear), what levels their fixed costs are at, what product or service should a company promote more or less. Assuming the following: (i) the sales price for each compuTech product sold is $50; (ii) each product sold costs $25 in Raw Material components; and the business Fixed Cost is as determined in your Income Statement. Q1: What is the BE in units for CompuTech in 2021? Q2: What impact would occur to the BE if the variable cost of materials rose by 10% during the year? If the overall market for computer products in CompuTech's market area is 20,000 units what share of the market does its BE (Q1) represent? Comment on what the calculated BE means relative to the total market. Q4: If CompuTech were to hire a Sheridan student (annual cost for Part Time service $30,000 per year) to help in the marketing of CompuTech, what would the impact be on the company's BE? Q5: If the Sheridan student could impact unit sales by 20% growth, would their hiring be justified? Explain. Q3: Q6: With the following information for a projected year 2022, prepare a pro-forma Income Statement for the year ending December 31, 2022, and then, calculate CompuTech's (a) income before taxes, (b) contribution margin and (c) PV ratio. RM Purchases: $205,000 Sales Salaries: 60,000 Travel: 3,000 Advertising: 5,000 Admin Salaries: 38,000 Revenue: 420,000 Depreciation: 40,000 Office leasing: 7,000 Finance Costs: 14,000 Income Taxes: 13,000 07: Assuming that the price per unit and the variable cost per unit have stayed the same as in calculations for 2021, what is the new BE in units for CompuTech in 2022? How does this compare to the BE in units for the previous year? Q8: Consider as a sensitivity that if the total market in the CompuTech market area had experienced a shrinking in units during the year (of 25%) should the Martins be concerned? Explain. By 2023 the Martins are projecting considerable improvement in their business. Using the following accounts prepare the income Statement for the period ending December 31, 2023. RM Purchases:$406,000 Sales Salaries: 80,000 Travel: 5,000 Advertising: 10,000 Depreciation: 80,000 Revenues: 700,000 Admin Salaries: 60,000 Office Leasing: 10,000 Finance Costs: 30,000 Income Taxes: 42,000 Q9: In a single EXCEL file complete a file displaying the three Income Statements that you have completed so far. Leave two blank columns between each year so that later we can do account changes between years. REMEMBER THAT CompuTech is still being formulated. Your work is expected to give insight to the Martins as to what are key issues, what is the prognosis for their business and essentially how comfortable they believe the future is for their impending business. MODULE 3: Profit decisions are important to the Martins. These decisions not only arise from understanding the market, pricing policies and margins the managers need to understand the tools and elements they need to consider as they target either profit levels or their ability to manage the elements of the profit calculation. For example, if Computech is operating at a loss or below BREAK EVEN then understanding how they might be able to manage costs, or volumes to generate profits becomes very important. BREAKEVEN analysis can help the Martins and CompuTech decide on any of the following: how many units they need to sell, what price should they sell at (and compared to what the market will bear), what levels their fixed costs are at, what product or service should a company promote more or less. Assuming the following: (i) the sales price for each compuTech product sold is $50; (ii) each product sold costs $25 in Raw Material components; and the business Fixed Cost is as determined in your Income Statement. Q1: What is the BE in units for CompuTech in 2021? Q2: What impact would occur to the BE if the variable cost of materials rose by 10% during the year? If the overall market for computer products in CompuTech's market area is 20,000 units what share of the market does its BE (Q1) represent? Comment on what the calculated BE means relative to the total market. Q4: If CompuTech were to hire a Sheridan student (annual cost for Part Time service $30,000 per year) to help in the marketing of CompuTech, what would the impact be on the company's BE? Q5: If the Sheridan student could impact unit sales by 20% growth, would their hiring be justified? Explain. Q3: Q6: With the following information for a projected year 2022, prepare a pro-forma Income Statement for the year ending December 31, 2022, and then, calculate CompuTech's (a) income before taxes, (b) contribution margin and (c) PV ratio. RM Purchases: $205,000 Sales Salaries: 60,000 Travel: 3,000 Advertising: 5,000 Admin Salaries: 38,000 Revenue: 420,000 Depreciation: 40,000 Office leasing: 7,000 Finance Costs: 14,000 Income Taxes: 13,000 07: Assuming that the price per unit and the variable cost per unit have stayed the same as in calculations for 2021, what is the new BE in units for CompuTech in 2022? How does this compare to the BE in units for the previous year? Q8: Consider as a sensitivity that if the total market in the CompuTech market area had experienced a shrinking in units during the year (of 25%) should the Martins be concerned? Explain. By 2023 the Martins are projecting considerable improvement in their business. Using the following accounts prepare the income Statement for the period ending December 31, 2023. RM Purchases:$406,000 Sales Salaries: 80,000 Travel: 5,000 Advertising: 10,000 Depreciation: 80,000 Revenues: 700,000 Admin Salaries: 60,000 Office Leasing: 10,000 Finance Costs: 30,000 Income Taxes: 42,000 Q9: In a single EXCEL file complete a file displaying the three Income Statements that you have completed so far. Leave two blank columns between each year so that later we can do account changes between years. REMEMBER THAT CompuTech is still being formulated. Your work is expected to give insight to the Martins as to what are key issues, what is the prognosis for their business and essentially how comfortable they believe the future is for their impending business

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