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Next Year's Budget Income Statement and Budget Current Year Management Goals for Budget General and Administrative $37,800 2.7% Repairs and Maintenance $7,000 0.5% Total Controllable

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Next Year's Budget Income Statement and Budget Current Year Management Goals for Budget General and Administrative $37,800 2.7% Repairs and Maintenance $7,000 0.5% Total Controllable Expenses $221,200 15.8% Income before Fixed Costs $262,159 18.7% Fixed Costs Occupancy Costs $140,000 10.0% Interest $65,000 4.6% Depreciation $21,000 1.5% Total Fixed Costs (Occu. $226,000 16.1% pancy, Interest, Deprecia. tion) Profit before Taxes $36,159 2.6% 7. Referring to question 6, management would like to 8. Below is a portion of an annual budget. December's hit a profit before taxes of 4.5% of sales. Has it hit revenues represent 18.2% of annual sales. If manage- that profit target with the budget guidelines listed ment wishes for all sales mix and expense percentages you rec- in question 6? If not, what changes would in the spreadsheet to remain the same in December ommend to the budget to realize a 4.5% profit? as they are for the annual budget, complete the (There are many possibilities.) December budget columns in the spreadsheet. Next Year's Budget Income Statement and Budget Current Year Management Goals for Budget General and Administrative $37,800 2.7% Repairs and Maintenance $7,000 0.5% Total Controllable Expenses $221,200 15.8% Income before Fixed Costs $262,159 18.7% Fixed Costs Occupancy Costs $140,000 10.0% Interest $65,000 4.6% Depreciation $21,000 1.5% Total Fixed Costs (Occu. $226,000 16.1% pancy, Interest, Deprecia. tion) Profit before Taxes $36,159 2.6% 7. Referring to question 6, management would like to 8. Below is a portion of an annual budget. December's hit a profit before taxes of 4.5% of sales. Has it hit revenues represent 18.2% of annual sales. If manage- that profit target with the budget guidelines listed ment wishes for all sales mix and expense percentages you rec- in question 6? If not, what changes would in the spreadsheet to remain the same in December ommend to the budget to realize a 4.5% profit? as they are for the annual budget, complete the (There are many possibilities.) December budget columns in the spreadsheet

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