Edward Food Processing Company is a wholesale distributor of biscuits in Holborn. The Company has achieved steady growth over the past few years while Biscuit prices have been on the increase. The Company is planning its budget for the next financial year. Presented below are the data used to project the current year’s aftertax income of £110,400.  £ Average Sales Price per Box 4.00 Average variable costs per Box  Cost of Biscuits 2.00  Profit on sale 0.40  Total 2.40 Annual fixed cost  Selling 160,000  Administrative 280,000  Total 440.000 Expected annual sales volume  (390,000 boxes) £1,560,000 Tax rate 20% Biscuit manufacturers have announced that they will increase prices of their products by an average of 15% in the coming year due to increase in material and labour costs. Edward Food Processing expects same rates or levels as the current year. Required: (a) Calculate Break-even point in boxes of biscuits for the current year.

Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: ● Quarter 1 Quarter 2 Quarter 3 Quarter 4 38,000 58,000 29,000 58,000 Budgeted unit sales Each T-shirt is expected to sell for $13. The purchasing manager buys the T-shirts for $5 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 23 percent of the next quarter's sales demand. Selling and administrative expenses are budgeted at $76,000 per quarter plus 18 percent of total sales revenue. Required: 1. Determine budgeted sales revenue for each quarter. 2. Determine budgeted cost of merchandise purchased for each quarter. 3. Determine budgeted cost of good sold for each quarter. 4. Determine selling and administrative expense for each quarter. 5. Complete the budgeted income statement for each quarter.

Management is planning to increase menu prices this year by 5 percent in Month 2 and another 3 percent in Month 4. Forecast food sales for months 1-6 this year by using the following historical information:   Month                  Sales Volume Last Year Month 1                               $140,000 Month 2                                 175,000 Month 3                                 190,000 Month 4                                 225,000 Month 5                                 265,000 Month 6                                 310,000

A new restaurant is ready to open for business. It is estimated that the food cost (variable cost) will be 64.46% of sales, while fixed cost will be $450,000. The first year’s sales estimates are $1,285,245. Calculate the firm’s operating breakeven level of sales.

Edward Food Processing Company is a wholesale distributor of biscuits in Holborn.The Company has achieved steady growth over the past few years while Biscuitprices have been on the increase. The Company is planning its budget for the nextfinancial year. Presented below are the data used to project the current year’s aftertax income of £110,400. £Average Sales Price per Box 4.00Average variable costs per Box Cost of Biscuits 2.00 Profit on sale 0.40 Total 2.40Annual fixed cost Selling 160,000 Administrative 280,000 Total 440.000Expected annual sales volume (390,000 boxes) £1,560,000Tax rate 20%Biscuit manufacturers have announced that they will increase prices of theirproducts by an average of 15% in the coming year due to increase in material andlabour costs. Edward Food Processing expects same rates or levels as the currentyear. Required: Determine the Volume of sales the company must achieve in the comingyear to maintain the same net income as projected for the current yearif the…

Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month’s budget appear below:   Selling price per unit $ 30 Variable expense per unit $ 19 Fixed expense per month $ 9,570 Unit sales per month 1,020   Required: 1. What is the company’s margin of safety? (Do not round intermediate calculations.) 2. What is the company’s margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34).)