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Skyflora.org is a growing and renowned brand in the field of online gardening solution provider. Rooftop gardening is one of its popular products. Cost and
Skyflora.org is a growing and renowned brand in the field of online gardening solution provider. Rooftop gardening is one of its popular products. Cost and sales data of rooftop gardening are given below: Variable cosrs: Fruit Plants Flower Plants Beautification Plants Vegetable plants Soil Tub Drum Medicine and others Total variable cost 275 225 175 75 200 360 470 75 1855 Fixed Costs (per month) : Office Rent Factory Rent Salary Promotional activity Depreciation - Pickup Van Depreciation - Office Equipment 25000 30500 180000 75000 20000 12000 Total Fixed cost 342500 Other information: Selling price : Daily sales 2750 10 Requirement: Compute all the requirements for the month of June, 2021 Immwvww V VIII Generate contribution format income statement showing total, per unit and percentage column. Compute the company's CM ratio and variable expense ratio. Calcuate break-even point in terms of taka sales and sales in units. Draw break-even graph showing all the relevant information. Identify sales of the company assuming target profit of 250000 taka per month. What is the margin of safety in sales and percentage at current level of sales Calculate degree of operating leverage (DOL) and explain its significance Recently price of the flower platns has increased by 33% and Drum cost has gone up by 45%. On the other hand office rent has gone down by 40%, due to effect of covid - 19. Considering ghe changes, reconstruct income satement of the company. Refer to changes in VII and calculate break-even point of the company. Refer to the original data; If the company increases marketing expenditures by 50000 per month then it will be able to sell 2 more gardens per day at same price. Should the company increases the marketing expenses to boost the sales. Justify your answer showing relevant calculations. IX X
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