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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 $9,500 $11,250 $8,500 $14,000 $11,750
Cost of services provided 6,5007,7505,7555,7588,250
General & Administrative expenses 1,025500375533313
a. Prepare a profitability analysis by job, showing gross profit and before-tax profit.
Job
A B C D E Total
Gross profit: Answer 1
Answer 2
Answer 3
Answer 4
Answer 5
Answer 6
Before-tax profit: Answer 7
Answer 8
Answer 9
Answer 10
Answer 11
Answer 12
b. Compute the gross profit %(gross profit -: sales) per job and the profit margin (before-tax profit -: sales) for each job.
Jobs Gross Profit -: Sales = Gross Profit %
A Answer 13
-: Answer 14
=
B Answer 15
-: Answer 16
=
C Answer 17
-: Answer 18
=
D Answer 19
-: Answer 20
=
E Answer 21
-: Answer 22
=
Jobs Before-Tax Profit -: Sales = Profit Margin %
A Answer 23
-: Answer 24
=
B Answer 25
-: Answer 26
=
C Answer 27
-: Answer 28
=
D Answer 29
-: Answer 30
=
E Answer 31
-: Answer 32
=
c. Which job(s) seem to be overperforming and which job(s) seem to be underperforming relative to the other jobs?
Answer 33
is overperforming the other jobs, considering the profit margin %.
Answer 34
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 35
-: Answer 36
=
Jobs Before-Tax Profit -: Sales = Profit Margin %
Overall of the five jobs Answer 37
-: Answer 38
=
If looking at just the average metrics , it is not apparent that Answer 39
is boosting the averages.

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