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miller cereals is a small milling company that makes a single brand of cereal. aps TOUTUDe llallside News Ju -2,3,4 Saved Help Save Integrative Cases
miller cereals is a small milling company that makes a single brand of cereal.
aps TOUTUDe llallside News Ju -2,3,4 Saved Help Save Integrative Cases 1-54 (Algo) Cost Data for Managerial Purposes-Finding Unknowns (LO 1-3) Miller Cereals is a small milling company that makes a single brand of cereal. Recently, a business school intern recommended that the company introduce a second cereal in order to "diversify the product portfolio. Currently, the company shows an operating profit that is 25 percent of sales. With the single product, other costs were twice the cost of rent. The intern estimated that the incremental profit of the new cereal would only be 10.5 percent of the incremental revenue, but it would still add to total profit. On his last day, the intern told Miller's marketing manager that his analysis was on the company laptop in a spreadsheet with a file name, New Product.xlsx. The intern then left for a 12-month walkabout in the outback of Australia and cannot be reached. When the marketing manager opened the file, it was corrupted and could not be opened. She then found an early (incomplete) copy on the company's backup server. The incomplete spreadsheet is shown as follows. The marketing manager then called a cost management accountant in the controller's office and asked for help in reconstructing the analysis. Required: As the management accountant, fill in the blank cells. (Do not round intermediate calculations. Round your final answers to the nearest whole number. Enter all amounts as positive values.) Miller Cereals Projected Income Statement For One Year Status Quo: % Increase Alternative: Single Product (Decrease) Two Products Difference Saved Help management accountant in the controller's office and asked for help in reconstructing the analysis. Required: As the management accountant, fill in the blank cells. (Do not round intermediate calculations. Round your final answers to the nearest whole number. Enter all amounts as positive values.) Miller Cereals Projected Income Statement For One Year Status Quo: % Increase Alternative: Single Product (Decrease) Two Products 25 % Difference $ 71,000 Sales revenue Costs Material Labor 14.500 51,000 52,400 65,500 65,500 28 % 25 % 40 % 0 % Rent Depreciation Utilities Other 9,100 4,550 9,100 6,100 34 Total costs Operating profit
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