Do problem 1, a through c ●●●Cost/Volume/Profit AnalysisCost value profit analysisEquations for cost volume profit analysisLimitations of cost volume profit analysisCost volume profit analysis templates.ProblemsProblem 1a. What is the initial budgeted profit (before tax) being planned by the Spartan LandRestaurant for the current year, given the following information?$975,000$135,000●●●●Cloud-basElectronic templates for businessExcel-based business budgeting●●●Revenue (food)Revenue (beverage)Food cost = 31% of food revenueBeverage cost = 22% of beverage revenueLabor cost (payroll) = 34% of total revenueEmployee benefits = 18% of labor cost (payroll)Other operating expenses = 14% of total revenueAll fixed costs = 8% of total revenue-. The owner does not approve of the initial budget. Working together, the owner andmanager believe they can accomplish the following:Implement marketing plans to increase the number of guests consuming food byan additional 12,000 (guest check average =$22.50)Increase beverage revenues by 8% over initial estimatesDecrease food costs to 30% ..Item.Decrease beverage costs to 20%Decrease payroll costs to 32% (but benefit costs will increase by 6% over the initialbudget because of new payroll taxes not included in the original budget)Decrease operating expenses to 12% of total revenue(Fixed costs will remain at the same dollar amount as in the original budget.)c. What is the revised estimate of budgeted profit before tax?Problem 2The manager of the Spartan Land Restaurant is developing the operating budget for nextyear using the following financial information from the current year:Current Year'sAmountOperations Budgeting and Cost-Volume-Profit Analysis 141Food revenueBeverage revenueFood costBeverage costLabor (including benefits)Other operating costsFixed costsFood revenueFood cost$973,000$112,500EntertainmentAdvertisingUtilities36%23%$298,00016%$70,000a. What is the current year's budgeted profit (loss)?b. Develop next year's budget: indicate the profit (loss).Problem 3PayrollPayroll taxes/benefitsDirect operating expensesNext Year's PercentageIncrease (Decrease)Assume the approved food operations budget for the Hilotown Restaurant for 20X1 is asfollows:4%2%1%$1,400,000434,000364,00042,000112,00014,00042,000770.000(1%)(2%)samesameNext Year'sAmount ($)% of Revenue100388338893126

Budgeted Profit A business's budgeted profit calculation serves as a forecast of its financial…

. Decrease beverage costs to 20% Decrease payroll costs to 32% (but benefit costs will increase by 6% over the initi budget because of new payroll taxes not included in the original budget) Decrease operating expenses to 12% of total revenue (Fixed costs will remain at the same dollar amount as in the original budget.) What is the revised estimate of budgeted profit before tax?

. Decrease beverage costs to 20% Decrease payroll costs to 32% (but benefit costs will increase by 6% over the initi budget because of new payroll taxes not included in the original budget) Decrease operating expenses to 12% of total revenue (Fixed costs will remain at the same dollar amount as in the original budget.) What is the revised estimate of budgeted profit before tax?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

eBook Determining missing items in return on investment and residual income computations The following table presents various rates of return on investment and residual incomes: InvestedAssets OperatingIncome Return onInvestment MinimumRate ofReturn MinimumAcceptableOperatingIncome ResidualIncome $980,000 $215,600 (a) 12% (b) (c) 520,000 (d) (e) (f) $62,400 $20,800 320,000 (g) 14% (h) 35,200 (i) 240,000 50,400 (j) 12% (k) (l) Determine the missing items, identifying each item by the appropriate letter. Round dollar amounts to the nearest whole number. Answer a. fill in the blank 1 % b. $fill in the blank 2 c. $fill in the blank 3 d. $fill in the blank 4 e. fill in the blank 5 % f. fill in the blank 6 % g. $fill in the blank 7 h. fill in the blank 8 % i. $fill in the blank 9 j. fill in the blank 10 % k. $fill in the blank 11 l. $fill in the blank 12
Question 3:salalah Company's financial information is given in the table below. Year 2020 Sales (OMR) Fixed Costs 445000 Variable Costs: 105000 245000 2021 500000 150000 280000 You are required to calculate the following values for each year. The years are independent of each other. a) P/V ratio, b) В.Е.Р. c) Sales required to earn a profit of OMR 45000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 300000.
Using the data below compute of the following: Contribution margin per unit in 3. 2018, 4. 2019 5. 2020 BEP in sales units in 6. 2018 7. 2019 8. 2020 BEP in peso sales in 9. 2018 10. 2019 11. 2020 What is the required sales in unit for the desired Net profit 12. 2018 13. 2019 14. 2020 2018 2019 2020 Sales per unit Desired profit Fixed costs. P7.50 P9.00 P10.00 P15,000 P28,000 P30,000 360,000 375,000 420,000 Variable cost Cost per unit: Variable cost 2.50 4.00 4.00
Question 3: Sohar Company's financial information is given in the table below. Year 2019 2020 Sales (OMR) Fixed Costs | 405000 | 450000 | 90000 120000 Variable Costs | 225000 240000 Calculate: ---uyuie d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 200000. - VIVI.
Question 3: Sohar Company's financial information is given in the table below. Sales (OMR) Fixed Costs Year 2019 | 2020 Variable Costs 225000 240000 405000 90000 450000 120000 Calculate: a) P/V ratio, b) B.E.P. c) Sales required to earn a profit of OMR 40000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 200000.
Question 3: Sobar Company's financial information is given in the table below. Year |2019 2020 Sales (OMR) Fixed Costs 405000 450000 90000 120000 Variable Costs 225000 240000 Calculate: a) P/V ratio, b) B.E.P. c) Sales required to earn a profit of OMR 40000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 200000.
Question 3: Mirbat Company's financial information is given in the table below. Year Sales (OMR) Fixed Costs Variable Costs 2020 445000 105000 245000 2021 500000 150000 280000 You are required to calculate the following values for each year. The years are independent of each other. a) P/V ratio, b) В.Е.Р. c) Sales required to earn a profit of OMR 45000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 300000.
Question 3: Oman Company's financial information is given in the table below. Year Sales (OMR) Fixed Costs 445000 Variable Costs : 2020 105000 245000 2021 500000 150000 280000 You are required to calculate the following values for each year. The years are independent of each other. a) P/V ratio, b) В.Е.P. c) Sales required to earn a profit of OMR 45000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 300000.
Question 3: Sobar Company's financial information is given in the table below. Sales (OMR) Fixed Costs 405000 450000 Variable Costs 225000 240000 Year 2019 90000 | 2020 120000 Calculate: a) P/V ratio, b) B.E.P.
Question 3: Şobar Company's financial information is given in the table below. Year 2019 2020 Sales (OMR) Fixed Costs 405000 Variable Costs 225000 90000 450000 120000 240000 Calculate: a) Sales required to earn a profit of OMR 40000. b) Margin of safety at a profit of OMR 50000 c) Profit when sales are OMR. 200000.
Remember: Gross profit = SP- CP Activity 1.2 enti Complete the following table: Table 1.2: Finding the cost price, the gross profit or the selling price No Cast price Gross prafit Selling price 1.2.1 R5 600 R8 700 1.2.2 R3 400 30% 1.2.3 R6 800 R12 700 1.2.4 R17 500 R35 000 The owner of an enterprise has to calculate both the gross and the net profit. A business has certain operating expenses thai must be deducied from the gross profit to get the net profit. Examples of operating expenses are: • Salaries Wages • Rent paid/rent expense • Advertisements • Stationery. The cost of advertising the business is one example of an operating expense. Gross profit minaş operating expenses equals net profit."
ata table K Fabulous Fabricators needs to decide how to allocate space in its prod year. It is considering the following contracts: E a. What are the profitability indexes of the projed Data Table b. What should Fabulous Fabricators do? a. What are the profitability indexes of the projects? The profitability index for contract A is *** Contract A B C ck on the following icon in order to copy its contents into a spreadsheet.) Use of Facility 100% 60% 40% NPV $1.98 million $1.02 million $1.53 million (Round to two decimal places