Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE HELP parts B and C = Plan B and Plan C and it to be completed on excel LLIU olicies Nighthawk Company's Income Statement

PLEASE HELP
image text in transcribed
image text in transcribed
parts B and C = Plan B and Plan C and it to be completed on excel
LLIU olicies Nighthawk Company's Income Statement for the Year Ended December 31, 2021 Sales (200,000 units) $1.200,000 Cost of goods sold 700.000 Gross profit 500,000 Operating expenses Selling $300,000 Administrative 275.000 525.000 Net loss $ 175,000) A cost behavior analysis indicates that 70% of the cost of goods sold are variable, 45% of the selling expenses are variable, and 40% of the administrative expenses are variable. Rounding Instructions - Round FINAL Variable cost to 2 decimal, FINAL break even answers to unit and dollar Format: Prepare parts 2 and 3 in CVP income statement format and show all computations using formulas in excel or google sheets for ALL calculations 1. Using the income statement above, compute the break-even point in total sales dollars and in units for 2021 2 PLANA - Tom has proposed a plan to improve its profitability. Tom feels that the quality of the product could be substantially improved by spending $0.25 more per unit on better raw materials. The selling price per unit could be increased to $6.25. Tom estimates that sales volume will increase by 20%. Compute net income under Tom's proposal and the break even point in dollars. (DO NOT Round the contribution margin ratio) 3 PLAN B Ji was a sales and marketing major in college, Jill believes that sales volume can be increased only by an intensive advertising and promotional campaign. She proposed the following plan as an alternative to Tom's: (1) increase variable 3. PLAN.B - Jit was a sales and marketing major in college. Ji believes that sales volume can be increased only by an intensive advertising and promotional campaign. She proposed the following plan as an alternative to Tom's: (1) increase variable selling expenses to $0.70 per unit. (2) increase the selling price per unit by 50.40, and (3) Increase fixed selling expenses by $50,000. In based her recommendations based on an old marketing research report that said that sales volume would Increase by 30% if these changes were made. Compute net income under Hit's proposal and the break-even point in dollars (DO NOT Round the contribution margin ratio.) 4 Which plan do you believe should be accepted and why? Using good written communication, completely and thoroughly explain your

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Investments

Authors: Barbara Davison

1st Edition

0894134272, 978-0894134272

More Books

Students also viewed these Accounting questions