22-6A - This year Cairo Company sold 35,000 units of its only product for $16 per unit. Manufacturing and selling the product required $120,000 of fixed manufacturing costs and $180,000 of fixed selling and administrative costs. Its per unit variable costs follow.
Direct labor (paid on the basis of completed units)... 3.00
Variable overhead costs........................................... 0.40
Variable selling and administrative costs....................... 0.20
Next year the company will use new material, which will reduce material costs by 60% and direct labor costs by 40% and will not affect product quality or marketability. Management is considering an increase in the unit sales price to reduce the number of units sold because the factory's output is nearing its annual output capacity of 40,000 units. Two plans are being considered. Under plan 1, the company will keep the price at the current level and sell the same volume as last year. This plan will increase income because of the reduced costs from using the new material. Under plan 2, the company will increase price by 25%. This plan will decrease unit sales volume by 10%. Under both plans 1 and 2, the total fixed costs and the variable costs per unit for overhead and for selling and administrative costs will remain the same.
1. Compute the break-even point in dollar sales for both (a) plan 1 and (b) plan 2.
2. Prepare a forecasted contribution margin income statement with two columns showing the expected results of plan 1 and plan 2. The statements should report sales, total variable costs, contribution margin, total fixed costs, income before taxes, income taxes (30% rate), and net income.
Solution is provided in a separate excel file attached. It contains the following parts.
1 Current year cost analysis (Contribution approach)
2 Statement of profitability for current ...
The solution gives 101 words and 2 Excel documents to show how to calculate the break-even point of the data given and how to construct a forecaster contribution margin income statement showing the expected results of the 2 plans.
Persuasive Essay brainstorming
Examine a local, regional, or national current event or political issue that has affected you, your family, or your community recently. For example, you could address either the national or your local government's fiscal and tax policies and explain how they have affected the economy or your own personal situation. You might discuss the role tourism plays in your area, how professional sports have impacted your community, the reasons for lay-offs within a company, whether or not you agree with the decisions your local school board has made recently and how they have affected your children. Your topic does not necessarily have to be controversial, but it should be something that impacts you directly or indirectly, and about which others should be persuaded to see the way you do.
This is an analytical essay and should be written in limited first-person narration. This essay requires at least two peer-reviewed outside references.
In this paper, begin with a title that prepares the reader for the topic. You will then explain the topic and your position on it in a well-developed introduction that includes a clearly written thesis statement. The introduction will be followed by well-developed paragraphs that support your thesis. The essay should acknowledge opposing views to your position-this may not take more than a paragraph or two.
The conclusion of a persuasive essay will tell the readers what to do, and how to think or feel about the topic.View Full Posting Details