Manage Budgets and financial plan

14. If 11,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production?

Management should note that the level of activity was above what had been planned for the month. This led to an expected increase in profits of $1,100. However, the individual items on the report should not receive much management attention. The favorable variance for revenue and the unfavorable variances for expenses are entirely caused by the increase in activity.

In this table, it reflects the changes in fixed plant overhead from $420,000 to $378,000. The company still has the fixed selling and administrative expense per quarter of $118,000. The new company fixed overhead is now at $496,000 from the past $538,000 ($42,000) change from past to

“The Budget Project” helped me mainly to budget my money in the future, also get a good job. The career I choose is a football career. It is something I can enjoy doing. If I play I will make enough money to pay all my bills. I will make 62,500 per game. I will have money for unexpected bills.

same amount of salary. However, you find that of the 50 sales people employed by CPC, 40 of

Sales centre A, they had achieved great success over the last year and consistently outsells other sales centres. In fact, due to the large number of accounts managed by our sales team and larger staff, Sales centre A is expected to sell as much volume as the other two sales centres put together. That means, the expense budget for Sales centre A must be more than other, at least twice time then the other centre. Because, they need a lot of money to pay for their cost, such as Wages, telephone, office supplies, and commission. That seems not fair for Sale centre A.

Current funds allocated to advertising and sales promotion is 3% of net sales ($80,000,000) = $360,000

Hiring an additional sales rep would cost Jones-Blair $60,000 per year. $60,000 divided by the contribution margin of 35% is, $171,428. In order to maintain the same profits, Jones-Blair must increase their sales by $171,428. This is significantly less than the 1M in sales increase and 16M sales increase presented in alternative 1 and 2.

Vice President of Sales wants to develop a new retail account in non DFW areas after only five accounts for the last 5 years. They want to focus on non DFW areas because half of their sales and dealers exist in that particular area. It has been asking by Mr. Burns on what the sale representative will do, either focusing on retail account side or on recruiting the professional painter. 70 percent of sale is through their professional painters in DFW areas, while 70 percent of sale went to do-it-yourselfers in non DFW areas. They would need 40 percent price cut to attract contractors since they have minimum number of contractor sale in DFW and other areas.

(Other revenue---$12,685 from March; Qi---intercompany hours; Qc---commercial hours). If the intercompany hours reach the capacity of 205 hours per month, then the revenue will be 800Qc+94,685.

In vertical analysis, it is easier to see elements as a percentage of Revenue. Between 2011-12, the portion that cost of sales takes in revenue has increased however, there is a bigger deterioration in distribution cost. In 2011, 9.21% of revenue remains as profit but in 2012 this figure decreases to 8.14%. Despite reduction in costs is one of the strategies of Ted Baker(part 1.4), analysis illustrates that costs increase each year.

No.of employees * 10% of gross sales = Cost of set up & ongoing communication + No. of employees * (Employee Base Salary + 5% of gross sales)

Thus, we can concluded that the best response goes to hourly rate at $733 with around 10% increases in sales volume and extra revenue increased for $2664 with income improved by $2096 while other variables assuming contains. However, aims to turnaround the situation on shortfall in income, price adjustment to stimulate

It is important for you to have a sales budget. A sales budget should agree with the budget committee and it should describe anticipated sales in units and dollars. Sales budgets are the basics for the other operating budgets and it is important that it be precise. The formula for a sales budget is units multiplied by unit selling prices, which equal budget sales. For example, the budget units to be sold each quarter is 1,000 and selling price is $10 would be 1000 x $10. If a company has a large number of products, it usually aggregates its expected sales into a smaller number of product categories or

This equation is solved for the sales volume in units. c. In the graphical approach, sales revenue and total expenses are graphed. The break-even point occurs at the intersection of the total revenue and total expense lines. 8-2 The term unit contribution margin refers to the contribution that