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Please find the following: 1Sales 2Cost of sales 3Gross profit 4Gross profit margin 5Direct costs 6Contribution profit 7Contribution profit margin 8Overhead 9Net profit/loss 10Net profit/loss
Please find the following:
1Sales
2Cost of sales
3Gross profit
4Gross profit margin
5Direct costs
6Contribution profit
7Contribution profit margin
8Overhead
9Net profit/loss
10Net profit/loss margin
11Return on investment
12Breakeven sales
_________
1New sales
2Cost of sales
3Gross profit
4Gross profit margin
5Overhead
6Net profit/loss
7Net profit/ loss margin
The HBM Company has two divisions, systems. David smith corporate office systems and Home office was building the budget for Home office systems. The forecast included next year's sales of $25,000,000. There was a common sales team for both divisions. 40% of the sales team would be dedicated to Home office systems. Sales reps for Home Office would earn a 15% ould commission (fee for service) on sales of Home office systems. Home Office be charged for 40% of the fixed direct costs of the Sales Team management. The sales ystems team management budget for salaries and benefits is $7.5 Million. The advertising and promotion budget included trade magazine advertising, production costs for ads, catalogs, manuals, p displays, sales promotion material. Production costs and Media Placement costs were budgeted a $300,000. Coop advertising copywriting and production costs are expected to be $100,000 The coop ad policy stated that coop ad allowances to customers would be 5% and was expected to be fully used. Freight expense was expected to be 8% of sales Manufacturing estimates that costs to produce the products are estimated to be 50% of sales. Indirect Manufacturing overhead charged to Home office systems was expected to be $600,000. Indirect office management including the CEo's salary and staff were expected to be $300,000. David Smith's team to run the Home Office Systems was estimated to cost $250,000. prepare a proforma income statement for the Home Office Systems Division. Prepare a proforma income statement for the Hos if sales fell to $20,000,000. t what level of dollar sales will the Home Office Systems Division Break even
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