Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I See The Light Projected Income Statement For the Period Ending December 31, 20x1 Sales 25,000 lamps @ $45.00 @ $30.00 $1,125,000.00 Cost of Goods

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

I See The Light Projected Income Statement For the Period Ending December 31, 20x1 Sales 25,000 lamps @ $45.00 @ $30.00 $1,125,000.00 Cost of Goods Sold 750,000.00 Gross Profit Selling Expenses: Fixed 375,000.00 $23,000.00 75,000.00 98,000.00 Variable (Commission per unit) @ $3.00 Administrative Expenses: $42,000.00 50,000.00 Fixed $2.00 Variable 92,000.00 Total Selling and Administrative Expenses: 190,000.00 $ 185,000.00 Net Profit Projected Balance Sheet As of December 31, 20x1 Current Assets Cash 34,710.00 Accounts Receivable 67,500.00 Inventory Raw Material Lamp Kits Work in Process Finished Goods 500@ S16.00 8,000.00 3000 $30.00 90,000,00 Total Current Assets 200,210.00 Fixed Assets S 20,000.00 6,800.00 Equipment Accumulated Depreciation Total Fixed Assets S 13,200.00 Total Assets S 213,410.00 Current Liabilities Accounts Payable 54,000.00 Total Liabilities 54,000.00 Stockholder's Equity S 12,000.00 Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity 147,410.00 159,410.00 S 213,410.00 PART 7 Capital Decision Making Big Al gives his worker's a one hour lunch and two fifteen minute breaks each day. He believes that a cold soda machine would be appreciated by his workers, and an appreciated worker is a good worker. He has priced a machine at a national member only warehouse for $1,850. The machine should be usable for 3 years, after which it would be inefficient, obsolete and would have to be disposed of at the dump. Big Al believes that 12 cans a day will be purchased. The plant is open five days a week, 50 weeks per year. A case of soda (24 cans) costs $5.76 and Big Al believes that a price of S.60 per can would win him good will What is the estimated annual sales in cans of soda? 17.01 What is the contribution margin per can of soda? (rounded to two places, S# # #) 17.02) How many cans of soda must be sold each vear to breakeyen? (Round up to zero places, # #cans) 17.03

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

Wiley CPAexcel Exam Review 2016 Study Guide January Auditing And Attestation

Authors: O. Ray Whittington

1st Edition

1119119960, 978-1119119968

More Books

Students also viewed these Accounting questions

Question

can you use home tab to create the index for the document

Answered: 1 week ago