Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please assist in answering these questions. Fixed Table 1: Selected Financial Data (actual cost and revenue data for May 2014) Cost Category Behavior May 2014
Please assist in answering these questions.
Fixed Table 1: Selected Financial Data (actual cost and revenue data for May 2014) Cost Category Behavior May 2014 Sales $766,667 Expenses: Raw Materials Variable $327,934 Bakery labor Mixed $158,767 Administration Salaries $41,367 Supplies Variable $3,833 Freight & Shipping-In Variable $4,907 Freight & Shipping-Out Variable $64,707 Utilities - Electricity Variable $9,813 Utilities - Gas (ovens) Variable $3,067 Water Variable $920 Repairs & Maintenance Fixed $4,293 Rent expense Fixed $19,167 Telephone & Internet Fixed $2,300 Co-owners' salary Fixed $25,300 Brokers' commissions Variable $30,667 Total Expenses S697,042 Operating Profit $69,625 Income Tax $22,280 Net operating income $47,345 Unit volume Average Operating Assets Minimum Rate of Return 64,500 $5,500,000 8.00% 1. Compute the Margin of Safety using the financials (10 points) 2. Compute the Contribution Margin (all 3)(10 points) 3. Develop a Contribution Margin Income Statement(15 points) 4. Analyze and Compute the Break-Even Point in units and sales Dollars... Which is better for this situation and why? (15 points) 5. Analyze and Compute the Target Profit for $189,000 (or Target Income) (100 points) 6. Type a (50 points) . 1 page Single spaced Times New Roman or Ariel Font size: 12 Paper defining your position as an accountant on if we should go forward with Humble's Pies or make modifications, and if so, what modifications? The managerial implications of the actual formulas you identify should be prevalent. For example, you should discuss each formula, but how is Humble pies doing as it relates to the formulas and how can Humble pies increase revenue, decrease costs. Your analysis should focus on providing specific actions based on the data that is identified. Providing actionable steps the company can take to improve with modifications. (NOTE: I'm not interest in definitions. Don't waste paper giving me definitions.) Fixed Table 1: Selected Financial Data (actual cost and revenue data for May 2014) Cost Category Behavior May 2014 Sales $766,667 Expenses: Raw Materials Variable $327,934 Bakery labor Mixed $158,767 Administration Salaries $41,367 Supplies Variable $3,833 Freight & Shipping-In Variable $4,907 Freight & Shipping-Out Variable $64,707 Utilities - Electricity Variable $9,813 Utilities - Gas (ovens) Variable $3,067 Water Variable $920 Repairs & Maintenance Fixed $4,293 Rent expense Fixed $19,167 Telephone & Internet Fixed $2,300 Co-owners' salary Fixed $25,300 Brokers' commissions Variable $30,667 Total Expenses S697,042 Operating Profit $69,625 Income Tax $22,280 Net operating income $47,345 Unit volume Average Operating Assets Minimum Rate of Return 64,500 $5,500,000 8.00% 1. Compute the Margin of Safety using the financials (10 points) 2. Compute the Contribution Margin (all 3)(10 points) 3. Develop a Contribution Margin Income Statement(15 points) 4. Analyze and Compute the Break-Even Point in units and sales Dollars... Which is better for this situation and why? (15 points) 5. Analyze and Compute the Target Profit for $189,000 (or Target Income) (100 points) 6. Type a (50 points) . 1 page Single spaced Times New Roman or Ariel Font size: 12 Paper defining your position as an accountant on if we should go forward with Humble's Pies or make modifications, and if so, what modifications? The managerial implications of the actual formulas you identify should be prevalent. For example, you should discuss each formula, but how is Humble pies doing as it relates to the formulas and how can Humble pies increase revenue, decrease costs. Your analysis should focus on providing specific actions based on the data that is identified. Providing actionable steps the company can take to improve with modifications. (NOTE: I'm not interest in definitions. Don't waste paper giving me definitions.)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started