presentation on Business Law
PRESENTATION
ON
MANAGERIAL ACCOUNT
BY
ID-1406065
ID- 1406067
ID- 1406071
ID- 1406073
ID- 1406079
Dobojit Chakama
Md. Shahadat Hossain
Md Saiful Islam
Md Mustafizur Rahman
A B M Khaled Haider
1
Assignment
• Memofax, Inc., produces memory enhancement kits for fax machines. Sales have been very erratic, with some months showing a profit and some months showing a loss. The company’s contribution format: • Income statement for the most recent month is given below:
Sales (13,500 units at $20 per unit) . . . .... $270,000
Variable expenses . . . . . . . . . . . . . . . . . . . . 189,000
Contribution margin . . . . . . . . . . . . . . . . . . . 81,000
Fixed expenses . . . . . . . . . . . . . . . . . . . . . … 90,000
Net operating loss . . . . . . . . . . . . . . . . . . . . $ (9,000)
2
Requirements
• 1. Compute the company’s CM ratio and its break-even point in both units and dollars.
• 2. The sales manager feels that an $8,000 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in a $70,000 increase in monthly sales. If the sales manager is right, what will be the effect on the company’s monthly net operating income or loss? (Use the incremental approach in preparing your answer.)
3
Requirements…cont…..
3. Refer to the original data. The president is convinced that a 10% reduction in the selling price, combined with an increase of $35,000 in the monthly advertising budget, will double unit sales. What will the new contribution format income statement look like if these changes are adopted? 4. Refer to the original data. The company’s advertising agency thinks that a new package would help sales. The new package being proposed would increase packaging costs by $0.60 per unit. Assuming no other changes, how many units would have to be sold each month to earn a
4
Requirements.. Cont..
5. Refer to the original data. By automating, the company could slash its variable expenses in half. However,
ON
MANAGERIAL ACCOUNT
BY
ID-1406065
ID- 1406067
ID- 1406071
ID- 1406073
ID- 1406079
Dobojit Chakama
Md. Shahadat Hossain
Md Saiful Islam
Md Mustafizur Rahman
A B M Khaled Haider
1
Assignment
• Memofax, Inc., produces memory enhancement kits for fax machines. Sales have been very erratic, with some months showing a profit and some months showing a loss. The company’s contribution format: • Income statement for the most recent month is given below:
Sales (13,500 units at $20 per unit) . . . .... $270,000
Variable expenses . . . . . . . . . . . . . . . . . . . . 189,000
Contribution margin . . . . . . . . . . . . . . . . . . . 81,000
Fixed expenses . . . . . . . . . . . . . . . . . . . . . … 90,000
Net operating loss . . . . . . . . . . . . . . . . . . . . $ (9,000)
2
Requirements
• 1. Compute the company’s CM ratio and its break-even point in both units and dollars.
• 2. The sales manager feels that an $8,000 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in a $70,000 increase in monthly sales. If the sales manager is right, what will be the effect on the company’s monthly net operating income or loss? (Use the incremental approach in preparing your answer.)
3
Requirements…cont…..
3. Refer to the original data. The president is convinced that a 10% reduction in the selling price, combined with an increase of $35,000 in the monthly advertising budget, will double unit sales. What will the new contribution format income statement look like if these changes are adopted? 4. Refer to the original data. The company’s advertising agency thinks that a new package would help sales. The new package being proposed would increase packaging costs by $0.60 per unit. Assuming no other changes, how many units would have to be sold each month to earn a
4
Requirements.. Cont..
5. Refer to the original data. By automating, the company could slash its variable expenses in half. However,