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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

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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 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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