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Job profitability analysis The cost accountant for Party Planners Inc. summarized the following information for five jobs of the company. Jobs A B C D
Job profitability analysis
The cost accountant for Party Planners Inc. summarized the following information for five jobs of the company.
Jobs
A B C D E
Sales $ $ $ $ $
Cost of services provided
General & Administrative expenses
a Prepare a profitability analysis by job, showing gross profit and beforetax profit.
Job
A B C D E Total
Gross profit: Answer
Answer
Answer
Answer
Answer
Answer
Beforetax profit: Answer
Answer
Answer
Answer
Answer
Answer
b Compute the gross profit gross profit : sales per job and the profit margin beforetax profit : sales for each job.
Jobs Gross Profit : Sales Gross Profit
A Answer
: Answer
B Answer
: Answer
C Answer
: Answer
D Answer
: Answer
E Answer
: Answer
Jobs BeforeTax Profit : Sales Profit Margin
A Answer
: Answer
B Answer
: Answer
C Answer
: Answer
D Answer
: Answer
E Answer
: Answer
c Which jobs seem to be overperforming and which jobs seem to be underperforming relative to the other jobs?
Answer
is overperforming the other jobs, considering the profit margin
Answer
is underperforming the other jobs, considering the profit margin
d What is the overall gross profit and profit margin calculated on the total amounts of the five jobs? What information is not apparent from these average metrics as compared to the calculations in parts a to c
Jobs Gross Profit : Sales Gross Profit
Overall of the five jobs Answer
: Answer
Jobs BeforeTax Profit : Sales Profit Margin
Overall of the five jobs Answer
: Answer
If looking at just the average metrics it is not apparent that Answer
is boosting the averages.
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