Question
In Year 1, Jay Company expects to sell 2,243 units at $110 per unit.Sales are expected to increase 25% each year for years 2-4.The unit
In Year 1, Jay Company expects to sell 2,243 units at $110 per unit.Sales are expected to increase 25% each year for years 2-4.The unit sales price will remain the same.Labor is 23% of sales, Overhead 10%, Materials 5%, and Variable Sales and Admin, 4%.Fixed Costs are Factory Overhead (2%) and Sales and Admin (4%) of year 1 sales.Annual interest expense is $425.The company tax rate is 20%.
a)Create the Sales Budget for the 4-year period.
b)Calculate the variable cost per unit based on the cost given.
c)Create a budgeted income statement for the 4-year period, using all the information provided and calculated.
d)Calculate the CM ratio, Unit CM, Breakeven in units, Breakeven in dollars for the total 4-year period.
e)If sales remain at the budgeted 4-year level, but fixed costs increase to $367,800, and the company wants to achieve target net income of $ $700,000, recalculate the CM ratio, Unit CM, Breakeven in units, Breakeven in dollars, and Target Breakeven in Units.
f)Create a breakeven chart for Jay Company based on unit increments of 250 and the revised fixed costs of $367,800.(Hint: You want to graph sales, fixed costs and total costs (total variable and fixed) on one scatter plot.)
i need help with questin f. how do i put the graph on excel
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