Question 10

January 20X1 2.500 Expected sales (in units) 13. N a. Prepare a monthly sales forecast in dollars for 01 b. Prepare a monthly contribution margin statemens c. Assume that for Heart & Soul's operations, for March). ending inventory in to be 80 percent of next month's sales. Assume the does the e with 2,000 CDs in its inventory. How many CDs buy in each month of Q1? purchases for each d. What is the cost of inventory 10. Eggs Cetera is new breakfast caf. Based nth? of custiomen company expects the following quarterly demand (numh ttarke 01 10,000 02 15,000 03 20,000 04 18,000 The typical customer spends $10 per meal at the restaurant estimates that food accounts for 80 percent of each custome stomer's bill. The othe cst ofl percent of its 20 percent comes from beverages. Food costs the caf 75 price, while beverages cost only 20 percent of their selling price. these data, prepare the following: a. A quarterly sales forecast. b. A quarterly contribution margin forecast. 11. Lincoln Cafe is considering buying a new oven that is expected to to proide second annual savings of $8,000 in the first year of its life, $7,500 in its of life, and 85,000 for the final two years of its useful life. It is expectl have a resale value of $2,000 at the end of the four-year period. Assume a percent interest rate and that savings occur at year end. a. Find the present value of the cost savings and resale proceeds of the ove b. If Lincoln Cafe could purchase the new oven for $26,000, should t company buy it