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I need a 4 to 6 pages of answer for this question urgently. i need to have a answer length of 4 to 6 pages
I need a 4 to 6 pages of answer for this question urgently.
i need to have a answer length of 4 to 6 pages and it should be done like a professional Cpa case
I want the key issues that will be concerning the management to be identified , and then the recommendations and the action plan that could be taken to eliminate those issues ??
PROBLEM 420 Sales Mix; Multi-Product Break-Even Analysis [L091 Smithen Company, a wholesale distributor, has been operating for only a few months. The company sells three oducts-sinks, mirrors, and vanities. Budgeted sales by product and in total for the coming month are shown below based on anned unit sales as follows: Units Percentage Sinks 1.000 50% Mirrors 500 25% Vanities 500 23% Total 2.000 100% Product Sinks Mirrors Vanities Total Percentage of total sales 48% 20% 32% 100 Sales S 240.000 100% S100,000 100% S160,000 100% S500,000 100% Variable expenses _72.000 30% 30.000 80% 89.000 55 240.000 488 Contribution margin S 168.000 70% S 20.000 20% S 72.000 45% 260.000 52% 168 40 S Contribution margin per unit S 144 223.600 Fixed expenses S 36,400 Operating income Fixed expenses Overall CM ratio Break-even point in sales dollars = $223,600 0.52 = $430,000 LILL Fayre. Mbrush TheGod Things Tech Break-even point in unit sales: Total fixed expenses $223,600 = 1,720 units Weighted average CM per unit $130* *($168 x 0.50) + ($40 x 0.25) + ($144 x 0.25) As shown by these data, operating income is budgeted at $36,400 for the month, break-even sales dollars at $430,000, and break- even unit sales at 1,720. Assume that actual sales for the month total $504,000 (2,100 units), with the CM ratio and per unit amounts the same as budgeted. Actual fixed expenses are the same as budgeted, $223.600. Actual sales by product are as follows: sinks, $126,000 (525 units): mirrors, $210,000 (1.050 units); and vanities. S168.000 (525 units). Required: 1. Prepare a contribution format income statement for the month based on actual sales data. Present the income statement in the format shown above 2. Compute the break-even point in sales dollars for the month, based on the actual data. 3. Calculate the break-even point in unit sales for the month, based on the actual data. 4. Considering the fact that the company exceeded its $500,000 sales budget for the month, the president is shocked at the results shown on your income statement in (1) above. Prepare a brief memo for the president explaining why both the operating results and the break-even point in sales dollars are different from what was budgeted. PROBLEM 420 Sales Mix; Multi-Product Break-Even Analysis [L091 Smithen Company, a wholesale distributor, has been operating for only a few months. The company sells three oducts-sinks, mirrors, and vanities. Budgeted sales by product and in total for the coming month are shown below based on anned unit sales as follows: Units Percentage Sinks 1.000 50% Mirrors 500 25% Vanities 500 23% Total 2.000 100% Product Sinks Mirrors Vanities Total Percentage of total sales 48% 20% 32% 100 Sales S 240.000 100% S100,000 100% S160,000 100% S500,000 100% Variable expenses _72.000 30% 30.000 80% 89.000 55 240.000 488 Contribution margin S 168.000 70% S 20.000 20% S 72.000 45% 260.000 52% 168 40 S Contribution margin per unit S 144 223.600 Fixed expenses S 36,400 Operating income Fixed expenses Overall CM ratio Break-even point in sales dollars = $223,600 0.52 = $430,000 LILL Fayre. Mbrush TheGod Things Tech Break-even point in unit sales: Total fixed expenses $223,600 = 1,720 units Weighted average CM per unit $130* *($168 x 0.50) + ($40 x 0.25) + ($144 x 0.25) As shown by these data, operating income is budgeted at $36,400 for the month, break-even sales dollars at $430,000, and break- even unit sales at 1,720. Assume that actual sales for the month total $504,000 (2,100 units), with the CM ratio and per unit amounts the same as budgeted. Actual fixed expenses are the same as budgeted, $223.600. Actual sales by product are as follows: sinks, $126,000 (525 units): mirrors, $210,000 (1.050 units); and vanities. S168.000 (525 units). Required: 1. Prepare a contribution format income statement for the month based on actual sales data. Present the income statement in the format shown above 2. Compute the break-even point in sales dollars for the month, based on the actual data. 3. Calculate the break-even point in unit sales for the month, based on the actual data. 4. Considering the fact that the company exceeded its $500,000 sales budget for the month, the president is shocked at the results shown on your income statement in (1) above. Prepare a brief memo for the president explaining why both the operating results and the break-even point in sales dollars are different from what was budgeted Step by Step Solution
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