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Presented below is the income statement of Clorox Inc. which represents the operating results for the current fiscal year ending June 30, 2023. Clorox Inc.
Presented below is the income statement of Clorox Inc. which represents the operating results for the current fiscal year ending June 30, 2023. Clorox Inc. had sales of 2,600 tons of product during the current year. Consider each question's situation separately. Sales $1,820,000 Variable costs Manufacturing $637,000 Selling costs $364,000 Total variable costs $1,001,000 Contribution margin $819,000 Fixed Costs Manufacturing $218,400 Selling costs $236,600 Administration $91,000 Total fixed costs $546,000 Operating Profit $273,000 Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. For Unit calculations round your answers up to the nearest whole number. a) What is the break even volume in tons of product for the year? Break even Point: Answer tons b) If the sales volume is estimated to be 3,000 tons next year, and the prices and costs stay at the same levels and amounts, what is the expected operating profit? Contribution margin: $Answer Fixed Costs: $Answer Operating Profit: $Answer c) Ignoring your previous answers, assume that Clorox Inc. plans to market its product in a new territory. Clorox Inc. estimates that an advertising and promotion program costing $76,000 annually would need to be undertaken for the next two or three years. An additional $70 per ton sales commission would be required. How many tons would have to be sold in the new territory to maintain Clorox Inc.'s current operating profit. Additional Fixed costs: $Answer New CM per unit: $Answer per ton Additional Sales Quantity: Answer tons Round your answers to 2 decimal places. d) Ignoring your previous answers, assume that Clorox Inc. estimates that the per ton selling price will decline 10% next year. Variable costs will increase $56.00 per ton and the fixed costs will not change. To keep the same operating profit of $273,000 next year, what must be the new sales amount? New Selling Price: $Answer per ton New Variable Costs: $Answer per ton New Contribution Margin: Answer per ton Operating Profit: $Answer Fixed Costs: $Answer Contribution Margin: $Answer New CM rate: Answer % New Sales: $Answer
Presented below is the income statement of Clorox Inc. which represents the operating results for the current fiscal year ending June 30, 2023. Clorox Inc. had sales of 2,600 tons of product during the current year. Consider each question's situation separately.
Sales $1,820,000
Variable costs
Manufacturing $637,000
Selling costs $364,000
Total variable costs $1,001,000
Contribution margin $819,000
Fixed Costs
Manufacturing $218,400
Selling costs $236,600
Administration $91,000
Total fixed costs $546,000
Operating Profit $273,000
Do not enter dollar signs or commas in the input boxes.
Round your answers to the nearest whole number.
For Unit calculations round your answers up to the nearest whole number.
a) What is the break even volume in tons of product for the year?
Break even Point: Answer
tons
b) If the sales volume is estimated to be 3,000 tons next year, and the prices and costs stay at the same levels and amounts, what is the expected operating profit?
Contribution margin: $Answer
Fixed Costs: $Answer
Operating Profit: $Answer
c) Ignoring your previous answers, assume that Clorox Inc. plans to market its product in a new territory. Clorox Inc. estimates that an advertising and promotion program costing $76,000 annually would need to be undertaken for the next two or three years. An additional $70 per ton sales commission would be required. How many tons would have to be sold in the new territory to maintain Clorox Inc.'s current operating profit.
Additional Fixed costs: $Answer
New CM per unit: $Answer
per ton
Additional Sales Quantity: Answer
tons
Round your answers to 2 decimal places.
d) Ignoring your previous answers, assume that Clorox Inc. estimates that the per ton selling price will decline 10% next year. Variable costs will increase $56.00 per ton and the fixed costs will not change. To keep the same operating profit of $273,000 next year, what must be the new sales amount?
New Selling Price: $Answer
per ton
New Variable Costs: $Answer
per ton
New Contribution Margin: Answer
per ton
Operating Profit: $Answer
Fixed Costs: $Answer
Contribution Margin: $Answer
New CM rate: Answer
%
New Sales: $Answer
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