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The cost accountant for Party Planners Inc. summarized the following information for five jobs of the company. Jobs A B C D E Sales $

The cost accountant for Party Planners Inc. summarized the following information for five jobs of the company.
Jobs
A B C D E
Sales $3,800 $4,500 $3,400 $5,600 $4,700
Cost of services provided 2,6003,1002,3022,3033,300
General & Administrative expenses 410200150213125
a. Prepare a profitability analysis by job, showing gross profit and before-tax profit.
Job
A B C D E Total
Gross profit: Answer 1
0
Answer 2
0
Answer 3
0
Answer 4
0
Answer 5
0
Answer 6
0
Before-tax profit: Answer 7
0
Answer 8
0
Answer 9
0
Answer 10
0
Answer 11
0
Answer 12
0
b. Compute the gross profit %(gross profit -: sales) per job and the profit margin (before-tax profit -: sales) for each job.
Jobs Gross Profit -: Sales = Gross Profit %
A Answer 13
0
-: Answer 14
0
=
B Answer 15
0
-: Answer 16
0
=
C Answer 17
0
-: Answer 18
0
=
D Answer 19
0
-: Answer 20
0
=
E Answer 21
0
-: Answer 22
0
=
Jobs Before-Tax Profit -: Sales = Profit Margin %
A Answer 23
0
-: Answer 24
0
=
B Answer 25
0
-: Answer 26
0
=
C Answer 27
0
-: Answer 28
0
=
D Answer 29
0
-: Answer 30
0
=
E Answer 31
0
-: Answer 32
0
=
c. Which job(s) seem to be overperforming and which job(s) seem to be underperforming relative to the other jobs?
Answer 33
is overperforming the other jobs, considering the profit margin %.
Answer 34
is underperforming the other jobs, considering the profit margin %.
d. What is the overall gross profit % and profit margin % calculated on the total amounts of the five jobs? What information is not apparent from these average metrics as compared to the calculations in parts a to c?
Jobs Gross Profit -: Sales = Gross Profit %
Overall of the five jobs Answer 35
0
-: Answer 36
0
=
Jobs Before-Tax Profit -: Sales = Profit Margin %
Overall of the five jobs Answer 37
0
-: Answer 38
0
=
If looking at just the average metrics , it is not apparent that Answer 39
is boosting the averages.

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