Question
Using Cost Volume Profit (CVP) analysis based on the cost analysis of 2020. iii) The required sales in dollars to achieve an annual profit of
Using Cost Volume Profit (CVP) analysis based on the cost analysis of 2020. iii) The required sales in dollars to achieve an annual profit of 320,000 after taxes and after paying 12% of the operating income before taxes as a bonus.
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 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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