Answered step by step
Verified Expert Solution
Question
1 Approved Answer
To recover R&D expenditure, manufacturers of 'smart' (intelligent; networked) devices are aiming for a gross profit margin of 45 percent. The last two Operating Statements
To recover R&D expenditure, manufacturers of 'smart' (intelligent; networked) devices are aiming for a gross profit margin of 45 percent. The last two Operating Statements for Nikon Ltd.'s production of new 'smart devices (with some automation) is shown: Operating Statements Period 1 Period 2 Sales 326,00 Sales 371,000 () Less costs: Materials/machining Direct labour Packaging Office costs Administration *Asset depreciation Office utility bills Sales staff costs Total facility costs Profit /income *production machinery 97,800 81,500 6,510 24,000 16,000 3,000 1,040 4,060 233,910 Less costs: Materials/machining 111,300 Direct labour 92,750 Packaging 7,409 Office costs 24,000 Administration 16,000 *Asset depreciation 3,000 Office utility bills 1,040 Sales staff costs 4,060 Total facility costs 259,559 Profit /income 92,090 111,441 a) Operating Budget: The production facility expects sales of 490,000 in the coming quarterly (3- month) period. Prepare an operating budget for Period 3 - this is to be based on the costing data given above
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started