BROCKWAY AND COATES

The rise in revenue was rapid starting from the year of operations. The key period of business was from April to September were revenues were equal to 65% of total revenue as the product was seasonal. The basis of forecasting for the year 1981 & 1982 is the expectations of sales by Mr. Turner & Mr. Rose. It is given that total sales were $ 15.80 million in first half of year 1981 and the total sales in 1981 to reach $ 30 million. Profit after tax was expected to be $ 1 million for 1st half and we assumed for the next half, profit will be in proportion to first half & expected to be amounting to $ 0.90 million. For year 1982, the sales expectation by Mr. Rose was around more than $ 71 million &

In this case, vendor-specific objective evidence of fair value is limited to the price charged when the same element is sold separately. Of the $12,000 Feb 1 agreement, $10,286 will be allocated to the Volcano System and $1,714 will be allocated to the PCS. The portion of the fee allocated to post-contract customer support shall be recognized as revenue ratably over the term of the post-contract customer support arrangement, because the post-contract customer support services are assumed to be provided ratably (PCS 985-605-25-67).

1) In this exercise, you viewed the settlement of costs to finished goods and manufactured output settlement. As noted in the exercise, each should be for $42,000.

cost associated with the target fill rate. Finally, I calculated the expected contribution per case, for each fill rate,

* Our company’s sales forecast has been based on performance from previous years along with market circumstances. We are looking at the future of the business objectively which we then can evaluate past to

In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.

Nick, I was able to figure most of the math except that there is a $40,715.99 delta which I think is because we rounded the budget for Steve as $278.2 M when it was $278,240,715.99. Also, I updated the Construction Contingency line to reflect both Ph1A and Ph2. There are few other changes I incorporated to reflect the line transfers, let me know if you are available today/tomorrow to talk-thru this before sending it to Jessica.

I have project that the first-year revenue of $20,000 and a 15% growth rate for the next two years. The complete cost of sales is projected to average 50% of gross sales, including 40% for the purchase of equipment and 10% for the purchase of additional items. Net income is projected to reach $70,000 in four three as sales increase and operations become more

Estimates of fixed costs are reasonably straightforward and are given in the case (p.280), a total of $250,000 ($160,000+$90,000).

The sixth line states that the Vinyl Poster/ Banner printing by USC Printing will cost $280. I will be ordering two Vinyl posters that will serve as titles for the exhibition. One will be hung on the wall and the other will be placed in the glass cabinet that will also be used for the exhibition. The cost of printing each poster will be $15 plus a $60 per hour compensation fee and a $5 proof. To be safe, I am stating that the compensation fee will be for two hours, totaling $120. This totals to approximately $140, so times two, the cost will be $280 dollars.

Eire Papers, Ltd Costs to Birch Paper Company = $391 that being $432 less sourcing profits from Southern Division ($90 x 40%) = $36 and Thompson Division Contribution $5 = $391

The investment proposal contained a large outlay for R&D, market research, and marketing to maximize the profitability of quick acceptance and longer-term success for the follow-on line. The following are the upfront expenditures ($ thousands): R&D - $ 625, Upfront Marketing - $625, Investment in Working Capital - $ 800, Property, Plant & Equipment - $ 1,470, Total Investment - $3,520. R&D and marketing expenditures are deductible for

3. Refer to the monthly sales forecasts given in the first Table. Assume that these amounts are realized and that the firm’s customers pay exactly as predicted.

The sales forecast is based on projected levels of demand. All the numbers are expressed

Novo’s first order to Baker consisted of 1210 gallons of adhesive. Their second order increased in size by 50% to result in an order of 1815 gallons of adhesive. Baker also faced an increase in costs of their materials by 10%. Baker only had to buy 25% of the products needed to create the order Novo requested because they had the other 75% on had so the 10% increase in cost only applied to the new 25% of materials.