Yourinstructorwillprovideanynecessaryfeedback tosupportyourprojectmovingforward.
Â
Scenario
Â
Managementhasreviewedyourreportandwouldliketoseebudgetcomparisonsbetweencontinuing operationswiththeexistingplantor openinga newplant.Afterareviewofoperationsandexpenses Managementhasprovidedthefollowinginformation:
Â
a) Openingnewplant:
· Salespriceremainsat$25,estimate55,000basketballssoldbasedonadditional advertising.
· UsevariableexpensescalculatedinWeek5,#5
· DonotestimateanyOverheadvariance
· Salescommissionsare5%ofgrosssales.
· Administrativesalariesremainunchanged.
· Rentexpenseis eliminatedbecausethenewplantoffersspaceforadministration.
· Managementhasdecidedto increasetheadvertisingbudgetby20%.
Â
Â
Â
Â
· Depreciationonthenewplantis $250,000,this is in additiontocurrentdepreciationon sellingandadministrativeequipment.
Â
b) Keepingexistingplant:
· Salespriceis increasedto$29,salesdeclineto48,000becauseof increasein price.
· Usevariableexpensescalculatedin Part3,#4
· DonotestimateanyOverheadvariance
· Salescommissionsare5%ofgrosssales.
· Administrativesalaries,rentandadvertisingincreaseby5%becauseof increasein costs.
· Depreciationexpenseis $10,000on sellingandadministrativeequipment.
Answers
Status NEW
Posted 21 Apr 2017 05:04 AM
My Price 8.00
Wee-----------k 6----------- Pr-----------epa-----------rea----------- Bu-----------dge-----------t-----------
Attachments
file 1492753614-Week 6 Preparea Budget.xlsx preview (144 words )
Ma-----------nag-----------eme-----------nth-----------asr-----------evi-----------ewe-----------dyo-----------urr-----------epo-----------rta-----------ndw-----------oul-----------dli-----------ket-----------ose-----------ebu-----------dge-----------tco-----------mpa-----------ris-----------ons-----------bet-----------wee-----------nco-----------nti-----------nui-----------ng -----------ope-----------rat-----------ion-----------swi-----------tht-----------hee-----------xis-----------tin-----------gpl-----------ant-----------or -----------ope-----------nin-----------ga -----------new-----------pla-----------nt.-----------Aft-----------era-----------rev-----------iew-----------ofo-----------per-----------ati-----------ons-----------and-----------exp-----------ens-----------es -----------Man-----------age-----------men-----------tha-----------spr-----------ovi-----------ded-----------the-----------fol-----------low-----------ing-----------inf-----------orm-----------ati-----------on:-----------a) -----------Ope-----------nin-----------gne-----------wpl-----------ant-----------:·----------- Sa-----------les-----------pri-----------cer-----------ema-----------ins-----------at$-----------25,-----------est-----------ima-----------te5-----------5,0-----------00b-----------ask-----------etb-----------all-----------sso-----------ldb-----------ase-----------don-----------add-----------iti-----------ona-----------l a-----------dve-----------rti-----------sin-----------g.Â-----------· U-----------sev-----------ari-----------abl-----------eex-----------pen-----------ses-----------cal-----------cul-----------ate-----------din-----------Wee-----------k5,-----------#5Â-----------· D-----------ono-----------tes-----------tim-----------ate-----------any-----------Ove-----------rhe-----------adv-----------ari-----------anc-----------e·----------- Sa-----------les-----------com-----------mis-----------sio-----------nsa-----------re5-----------%of-----------gro-----------sss-----------ale-----------s.Â-----------·
Not Rated(0)