Year: 2 Sales and Collections Information: BBJ: EBJ: JBJ: Basic Blue Jeans Embroidered Blue Jeans 7 Estimated Growth Per Quarter: 2018 Production Information: Raw Materials (per unit): BBJ EBJ JBJ RM Cost/Unit Fabric (Yards) 3 3.25 3.5 Zippers/Rivets (Sets) 1 1 1 $6.00 per yard $1.25 per set 2% Embroidery Thread (Yards) Embellishments (Sets) 3 27 3 $0.03 per yard 0 0 1 $8.00 per set Payables Information: Jeweled Blue Jeans 9 Projected Sales First Quarter in units: 10 BBJ: EBJ: 39,000 16,000 JBJ: 10,000 13 Sales Price: BBJ: $35 EBJ: JBJ: $44 $64 12345678-22231117222222222222 29 18 Previous Year Sales and Remaining A/R: 19 20 Q3 21 Q4 Direct Labor (per unit): Revenue $ 2,617,000 $ $ 2,670,000 $ Collected 2,433,810 $ 1,922,400 $ Bad Debt 36,638 $ 37,380 $ Net A/R 146,552 Overhead: 710,220 23 Collections based on historical averages: 30% Sales are cash 70% Sales are credit 3% Average sales returns/allowances/discounts 60% Collected within quarter of sale 30% Collected in quarter after sale 8% Collected in second quarter after sale 40% of direct materials are paid in the quarter of sale 60% are paid in the following quarter Overhead and Non-Manufacturing Information: Variable Manufacturing Overhead: $7.00 per Machine Hour Monthly Fixed Manufacturing Overhead: $4,500 Building costs (taxes, insurance, etc.) $2,700 Depreciation $8,400 Salaries and benefits for indirect personnel Variable Selling and Administrative Costs Commissions: 3% net sales Monthly Fixed S/A Costs: Time in Minutes BBJ EBJ JBJ DL Cost/Hour Cutting Embroidery 11 Embellishing 250 12 14 $18.00 7 9 $22.00 0 19 $26.00 General Instructions: Assembly 6 8 8 $15.00 Applied on the basis of Machine Hours BBJ EBJ JBJ Cutting time in minutes Assembly time in minutes 8 9 13 5 10 8 Inventory to keep on hand: Finished goods: Raw Materials: 15% of next quarter's sales projection 25% of next quarter's production requirements $6,500 Office costs $24,650 Depreciation $14,000 Salaries and benefits Do not use formulas to round up or down to whole units - just char display settings.