Pleasw help with this question... this is one questions with different part. please complete all the part.

please do the whole this with correct answer... i will a great review if it is all right.

D E Part I Data 1 2 Poppity Pop is a growing manufacturer that produces three types of popcorn makers: home (stovetop). office (free-standing unit with a smaller capacity than movie theater maker), and movie theater (free-standing unit, largest popcom capacity). The company has no sales force of its own; rather, it relies completely on independent sales agents to market its products. These agents are paid a sales commission 3 4 6 7 8 Current commission rate (as % of sales) Income tax rate Variable mfg as % of sales 16% 40% 43% Matt Cornish, the company's controller, has just prepared the company's budgeted income statement for next year as follows: 9 10 Poppity Pop! Budgeted Income Statement For the Year Ended December 31st 11 12 Sales s 33,623,760 15 13 Manufacturing expenses 14 Variable S 14,458,217 Fixed overhead 3.900.000 18,358,217 16 Gross Margin 15,265,543 17 Selling and administrative expenses: 18 Commissions to agents 5.379.802 19 Fixed marketing expenses 250.000 20 Fixed administrative expenses 1.680,000 7 309.802 21 Net operating income 7955,742 22 Interest expense (fixed) 540.000 23 Income before income taxes 7415,742 24 Income tax expense 2966,297 25 Net income 4449.445 26 As Matt handed the statement to Mya Ferguson, the company's president, he commented. I went ahead and used the agents' current commission rate (as shown in cell B5) in completing these statements. However, we've just learned that they refuse to sell our products next year unless we increase the commission rate as 27 shown below in cell B29 Cover Sheet Part I Data Part I Response Part II Dataset Calculation Mode: Automatic Workbook Statistics Part 1 A B D C 25 Nct income 4.449.445 26 As Matt handed the statement to Mya Ferguson, the company's president, he commented, I went ahead and used the agents current commission rate (as shown in cell B5) in completing these statements. However, we've just learned that they refuse to sell our products next year unless we increase the commission rate as 27 shown below in cell B29. 28 29 Requested commission rate for next year 21% 30 "That's the last straw." Mya replied angrily. "Those agents have been demanding more and more, and this time they've gone too far. How can they possibly defend that new rate?" "They claim after paying for advertising, travel, and the other costs of promotion, there's nothing left over for profit", replied Matt "I say it's just plain robbery," retorted Mya. "And I also say it's time we dumped those guys and got our own sales force. Can you get your people to work some cost figures for us to look at?" "We've already worked them up," said Matt. Several companies we know pay a commission (sce industry standard in cell B34) supplemented by a small salary. Of course, we would have to handle all promotion costs, too. We figure our fixed expenses would increase, but that would be more than offsct by the commission that we would avoid on agents commissions. The increase in fixed costs is detailed below. 31 32 33 Additional information as follows: Industry commission rate this is what the company 34 would pay its own salespeople for commissions) 996 35 36 Increase in fixed costs if the company uses its own sales staff rather than agents: 37 Sales managers salaries S 220.000 38 Salespersons salary $ 1.160.000 39 Travel and entertainment S 710.000 40 Advertising $ 3,300,000 41 Total $ 5.390,000 42 "Super" replied Mya. "And I noticed that the total increased in fixed costs (cell B41) is fairly comparable to how much we're paying the agents in commissions last year (as shown in the income statement in cell B18), "It's even better than that," explained Matt. "We can actually save more each year because we're paying our auditors to check out the agents' reports. So our overall administrative expenses would be less" "Pull all of these numbers together and we'll show them to the executive committee tomorrow." said Myz "With the approval of the committee, we can move on the matter immediately." 43 44 Cover Sheet Part I Rata Part I Boras B45 > fx 75000 B D E "I say it's just plain robbery," retorted Mya. "And I also say it's time we dumped those guys and got our own sales force. Can you get your people to work some cost figures for us to look at? "We've already worked them up," said Matt. Several companies we know pay a commission (sce industry standard in cell B34) supplemented by a small salary. Of course, we would have to handle all promotion costs, too. We figure our fixed expenses would increase, but that would be more than offset by the commission that we would avoid on agents commissions. The increase in fixed costs is detailed below. 31 32 33 Additional information as follows: Industry commission rate this is what the company 34 would pay its own salespeople for commissions) 9% 35 36 Increase in fixed costs if the company uses its own sales staff rather than agents: 37 Sales managers salaries $ 220,000 38 Salespersons salary $ 1,160,000 39 Travel and entertainment $ 710.000 40 Advertising 3,300,000 41 Total 5,390,000 42 "Super" replied Mya. "And I noticed that the total increased in fixed costs (cell B41) is fairly comparable to how much we're paying the agents in commissions last year (as shown in the income statement in cell B18)." "It's even better than that," explained Matt. "We can actually save more each year because we're paying our auditors to check out the agents' reports. So our overall administrative expenses would be less". "Pull all of these numbers together and we'll show them to the executive committee tomorrow." said Mya. "With the approval of the committee, we can move on the matter immediately." 43 44 Amount paid to auditors last year to check sales agents reports (included in administrative expense in cell B20 on income statement) 45 46 47 48 49 50 75.000 53 54 55 Cover Sheet Part I Data Part I Response Part II Dataset Part Galatan Maut E23 fo B C D Part 1: CVT Analysis Question 1: Contribution Margin Income Statement 1 2 3 4 5 6 7 8 9 Prepare a contribution format Income statement for cach of the three scenarios: a. If the agents commission remains unchanged (restate the income statement provided) b. If the agents commission rate is increased c. If the company employs its own sales force. 10 Poppity Pop! Budgeted Income Statement - Contribution Format For the Year Ended December 31st 11 a. Last year b. Sales agents pald new commission rate c. Own Sales Force 12 Commission of sales) 16% 21% 99 13 Sales s 33,623 760 5 33,623,760 33,623,760 14 Variable expenses (list alphabetically 15 Commissions 16 Variable manufacturing expertise 17 Contribution martin 18 Fixed expenses (list alphabetically 19 Administrative expense 20 21 22 Advertising Interest expense (fixed) Manufacturing overhead Marketing expense Sales manager & salespersons salaries 23 24 25 Travel & entertainment 26 Total fixed expenses 27 Income before income taxes 28 Income tax expense 29 Net income 30 31 32 33 Question 2: Breakeven Point & Margin of Safety 34 35 Compute the CM ratio and breakeven point in sales dollars assuming Cover Sheet Part I Data Part I Response Calculation Mode: Automatic Workbook Statistics Part II Dataset Part II Rese View Help Editing Merge General $9.99 Conditional Format G Calibri Light 11 BIBA... E23 so B C D 32 33 Question Breskeren Point & Maries of Safety 34 35 Compute the CM rate and breaker point in sales dollars assuming The agents comision rate remain changed from last year 37 . The agents commission rate is increased c. The company employs its own sales force d. Explain what each of the calculation mean (including a comparison between eatives). This must be explained in a way that management can understand, assuming they have not see this terminology before and don't understand what the calme 39 40 b. Sales agents par come Own SalesForce Analy Explanation marks ach) 41 CM Ratio 42 Breskve point in sales de la 43 Margins of safety in sales dollers Margin of Safety Percentage 45 46 47 Question : Sales Dollars Required if Sales Agents are l'ad New Rate Assume the company decides to continue selling through agents and prosthe new commission rate. Determine the dollar sales that would be required to generate the same operating income i contained in the budgeted Income statement as shown in cell 49 C53). 50 51 Target operating income 7415, 52 Sales Dollars Hequired 53 Analysis Asume the company has forecasted a 15% Increase in sales for next year, Is the sales dollars required cell C55) 54 wchlevable for the company? Whyer why not? Forecasted sales for next year 55 Achievable (yes or no) A Cover Sheet Part I Data Part I Response Part II Dataset Part II Response + Calculation Mode: Automatic WorkbookStatistics La Light D 29 DO Merge General > 00 8 Cond E23 A 8 D 45 47 Question 3: Sales llars Required if Sales Agents are Paid New Rate 48 Assume the company decides to contine selling through agents and pay the new commission rate termine the dollar sales that would be required to generate the same operating income as contained in the budgeted income statement as shown in cell 49 C53). 50 51 Target operating income 37415.742 52 Sales Dollars Required 53 Analysis: Assume the company has forecasted a 155 Increase in sales for next year, Is the sales dollars required cell C55) 54 achievable for the company! Why or why not? Forecasted sales for next year 55 Achievable (yes or no) 56 Why or Why not? 57 58 59 60 Question: Indifference Point Difference show as positive) Determine the dollar sales at which net income would be equal regardless of whether the company wells through agents at the commission rate) or employs its own sales force. 62 Sales Agents paid 63 commission rate Own sales force 64 Total fixed costs (this has been linked for you) 65 CM Ratio (this has been linked to your previous answer 09 09 66 67 Indifference point 68 Tell management what the indifference point means in a way that they can understand. When would the company prefer to use sales agents? When would they prefer to use their own sales force? Why is this the case! Be very clear in your response! mark 69 A Cover Sheet Part I Data Part I Response Part II Dataset Part II Response + Calibri Light B Merge General E23 D 65 CM Hati (this has been linked to your previous answer) 0% 044 66 67 Indifference point 68 Tell management what the Indifference point means in a way that they can understand. When would the company prefer to use sales agents? Whes would they prefer to use their own sales force? Why Is this the case Be very clear in your response (4 mark 67 20 71 72 Question 8 Assume the company is forecasting 15% increase in sales next year. Based on all analysis completed, make recommendation as to whether the company should continue to use sales agents at the new commission rate) or employ its own salesforce. Give reas for your answer and remember you are speaking to non-accountants. Name at least two factors that management should take into consideration when making this decision. This must be explained in a way that they can understand. "Textbook awer or per we will not be awarded murka. Detailed calculations are not required. This is a written response. (10 marks) 73 74 75 76 Cover Sheet Part I Data Part I Response Part II Dataset Part II Recans