Question
Using Cost Volume Profit (CVP) analysis based on the cost analysis of 2020 , 1) The required sales dollars to achieve an annual net income
Using Cost Volume Profit (CVP) analysis based on the cost analysis of 2020, 1) The required sales dollars to achieve an annual net income after taxes of $180,000.
ESFs Statement of Operating Income for Years Ended December 31, 2016 Through December 31, 2019 | ||||
Years | 2019 | 2018 | 2017 | 2016 |
Sales | $2,223,148 | $1,638,140 | $1,300,075 | $1,134,998 |
Cost of Goods Sold | 1,270,370 | 936,080 | 742,900 | 648,570 |
Gross Margin | 952,778 | 702,060 | 557,175 | 486,428 |
Operating Expenses | 844,796 | 556,968 | 390,023 | 317,799 |
Operating Income | $107,981 | $145,092 | $167,153 | $168,628 |
Drafted ESFs Statement of Operating Income for Ended December 31, 2020 | |
Sales | $ 3,114,160 |
Salesroom Utilities and Fuel | 6,491 |
Office Equipment Depreciation | 8,400 |
Other Administrative Expenses | 11,548 |
Factory Miscellaneous Components | 13,142 |
Manufacturing Maintenance Supplies | 17,373 |
Production Cleaning Supplies | 24,993 |
Manufacturing Maintenance | 25,224 |
Property Taxes - Factory | 25,520 |
Amortization - Factory Machinery | 28,555 |
Office Maintenance | 38,718 |
Shipping Costs | 42,893 |
Furniture Accessories | 46,013 |
Salesroom Building Depreciation | 48,600 |
Fibber Filling | 50,856 |
Promotional Materials | 120,283 |
Factory Building Insurance | 62,013 |
Salesroom Property Taxes and Insurance | 65,283 |
Amortization-Factory Building | 68,750 |
Advertising | 71,852 |
Factory Utilities | 81,417 |
Production Supervisor Salary | 90,000 |
Salespeople Travel | 92,788 |
Warehouse Wages | 152,817 |
Sales Staff Commissions | 249,133 |
Timber furniture components | 311,416 |
Administrative Wages | 368,000 |
Production payroll | 934,248 |
Total Expenses and Costs | 3,056,326 |
Operating Income | $ 57,834 |
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