Calculate purchases, gross margin, inventory turn days, accounts receivable turn days, and accounts payable turn days for the years ended 20x2, 20x3, 20x4, 20x5. |Circuits Technology, Inc. (CTI). |20x1 |20x2 |20x3 |20x4 |20x5 | | | | | | | | |Accounts Receivable, net | $ 837 | $ 1,335 | $ 1,121 | $ 962 | $ 822 | |Inventory | $ 1,025 | $ 1,327 | $ 1,099 | $ 1,003 | $ 1,027 | |Accounts Payable | $ 164 | $ 380 | $ 225 | $ 201 | $ 175 | | | | | | | | |Sales | $ 3,780 | $ 5,638 | $ 4,623 | $ 4,022 | $ 3,905 | |Cost of Sales | $ 1,812 | $ 2,691 | $ 2,399 | $ 2,095 | $ 1,859 | |Gross Margin | $ 1,968 | $ 2,947 | $ 2,224 | $ 1,927 | $ 2,046 | | | | | | |
Holidays, Vacations, and Sick leave. Retrieved June 8, 2014,from: http://www.dol.gov/elaws/esa/flsa/hoursworked/screenEE14.asp United States Department of Labor (DOL). (2008, July). Fact Sheet #17B: Exemption for Executive Employees Under the Fair Labor Standards Act. Retrieved June 8, 2014, from http://www.dol.gov/whd/overtime/fs17b_executive.pdf United States Department of Labor (DOL).
Question 1. Break-even point (per unit) = Total Fixed Costs / Average Revenue – Variable Costs per Unit Total Fixed Costs = Total Costs – Variable Costs Total Costs = $138,410 (Total Expenses, Exhibit 1) In this case, Variable Costs would include Cleaning Supplies, Linen Service, and one half of Miscellaneous expenses; therefore, Total Variable Costs = 1,920 + 13,920 + 3,657 = $19,497 Thus, Total Fixed Costs = $138,410 - $19,497 = $118,913 Average number of rooms occupied per season = 120 days x 80 rooms x 80% occupancy rate = 7,680 Variable Cost per Unit = $19,497/7,680 = $2.54 Average revenue (price) = $160,800/7,680 = $20.94 Thus, break-even point = $118,913/($20.94 - $2.54) = 6462 room nights total / 120 days = 54 rooms Question 2. Weekend nights for the season = 120 nights/7 nights in a week x 2 weekend nights = 34 weekend nights Contribution margin from question 1 or Average Revenue – Variable Cost per Unit = = $20.94 - $2.54 = $18.4 Loss: 80 – 72 = 8 rooms x 34 weekend nights x $18.4 = $5,005 Profit: 72 rooms x 34 weekend nights x $5 increase in rates = $12,240 Difference = $12,240 - $5,005 = $7,235 (number if positive; therefore, we have a profit and we should add it to profit before taxes) Therefore, revised profit before taxed would be equal to $22,390 + $7,235 = $29,625 Question 3. Contribution Margin = Average Revenue – Variable Cost per Unit According to the case, the plans were to reduce the rates for the off-season to $10 and $15 for single and double occupancy respectively. Therefore, the average price per room during off-season would be ($10 + $15)/2 = $14 Variable cost per unit from question 1 equals to $2.54 per occupied room/day Therefore, Contribution Margin = $14 - $2.54 = $11.46 per occupied room/day Question 4.
of Table 1 operations Cost Incurred (USD) Ref of cost given in column: 4 Unit Cost (USD) 1 2 3 4 5 6 A Handling of cartons B Shipping of cartons C Desktop delivery 2000 dly 440000 Para 3(c) 220/ dly D Set up of manual E Enter individual F Validate EDI orders 8000 orders 40000 Para 3(d) G General & Selling in Warehouse by freight 80000 cartons 75000 cartons 16000 orders 150000 lines 600000 Para 3(d) 4160000 Para 3(a) 52/ 450000 Para 3(b) 6/ carton Carton 160000 Para 3(d) order lines of each order (i) (ii) (iii) 10/order 4/line 5 / order Expense USD 42500000 of Annual Sales 200000 Para 3(e) 0.47% of sales 3. Explanation of working out the cost shown in column 5 of table above is given below. (a) Handling of cartons in warehouse:-This has two components. Cost of personnel used in warehouse operations and cost of warehouse excluding personnel expense. (i) Cost of Warehouse excluding personnel is USD 2000000 (ii) Only 90% of warehouse personnel are used for handling of cartons in warehouse.
1991 = (280,000 – 150,000) / 290,000 = .448 C. Average Collection Period i. 1991 = 120,000 / (1,200,000 * .6 / 360) = 60,000 days D. Inventory Turnover i. 1991 = 900,000 / 150,000 = 6.00 E. Fixed Asset Turnover i. 1991 = 1,200,000 / 920,000 = 1.304 F. Total Asset Turnover i. 1991 = 1,2000,000 / 1,200,000 = 1.00 G. Debt Ratio i.
cost per hour = $9,069 ÷ 316hours = $28.70 March var. cost per hour = $10,361÷ 361 hours = $28.70 Power cost per hour January var. cost per hour = $1,546 ÷329 hours =
Ratio calculations consists of operating efficiency, financial structure and profitability ratios. Figure 1.1: Key accounting ratios Operating efficiency According to operating efficiency we can talk about cycle of production which normally consists of supply, production, demand and collection phase. Each has its important ratios which are analysed in following lines. Supply phase Trade-creditor days give us information about payment terms of obligations to suppliers. In case of Ryanair it could see that it is usually more than 21 days from 2008 to 2010 which is approximately 3 weeks.
What would be the impact on monthly sales cost, and income? Regular Selling Price Impact: Price $4,350 Quantity $3,000 Revenue $13,050,000 Variable Manufacturing Costs ($5,385,000) Variable Marketing Costs ($825,000) Contribution Margin $6,840,000 *Fixed Manufacturing Costs ($1,980,000) *Fixed Marketing Costs ($2,310,000) Income $2,550,000 Using the regular selling price Income = Revenues – Total costs = $13,050,000 - $10,500,000 = $2,550,000 * Continue to the next page New Selling Price Impact: Price $3,850 Quantity $3,500 Revenue $13,475,000 Variable Manufacturing Costs ($6,282,500) Variable Marketing Costs ($962,500) Contribution Margin $6,230,000 Fixed Manufacturing Costs ($1,980,000) Fixed Marketing Costs ($2,310,000) Income $1,940,000 2) After price reduction, income = $13,475,000 - $11,535,000 =
Mean daily EE and EI over two day period. | |Mean |Range | |Energy Intake (kJ) |13224 |11647 - 14800 | |Energy Expended (kJ) |13541 |13273 – 13809 |
Use the following example to learn the SLOs Prepare income statement under absorption costing and direct costing for ABC corporation from the following data: Direct material cost per unit is $4,direct labor cost per unit is $5,variable manufacturing overhead per unit is $3,fixed manufacturing overhead budgeted per month is $12000,variable selling and administrative cost per unit is $2 and fixed selling and administration cost budgeted per month is $7000.Production and sale information is as follows: January February March April Total Units produced 8000 10000 5000 3000 26000 Units sold 8000 9000 6000 3000 26000 Sales price per unit is $ 30 Budgeted capacity of production per month is 8000 units. Capacity variance resulting in over applied and under applied overhead is closed to cost of goods sold. Reconcile the income under absorption and direct costing. Sample multiple choice questions: 1)ABC company had a net income of $120000 using absorption costing income statement and $ 95000 using variable costing income statement. Fixed manufacturing overhead cost per unit was $10.If 22500 units were produced how many units