Lydia Cravette operates a florist shop called Scents Unlimited Ltd. During the month of May, the following things occurred: 1. She spent $210 on the telephone system, $400 on utilities, and $1,300 on rent. 2. She took in $28, 100 from selling flowers and plants. All of the shop's sales were cash sales. 3. She spent $10,800 for the cost of the flowers sold, she paid $320 for gas and repairs to the delivery vehicle (use Operating Expenses account), and she paid her employees $6,900 for wages earned during the month. (a) Prepare a statement of income to determine how much Scents Unlimited Ltd. earned in May. Scents Unlimited Ltd. Statement of Income For the month of May, 2xxx $ $ $
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- Schrute Farm Sales buys portable generators for $460 and sells them for $740. He pays a sales commission of 5% of sales revenue to his sales staff. Mr. Schrute pays $4,000 a month rent for his store, and also pays $2,200 a month to his staff in addition to the commissions Mr. Schrute sold 400 generators in June. If Mr. Schrute prepares a traditional income statement for the month of June, what would be his gross profit? $112,000 B. $480,000 $184,000 D. $296,000Jordan opens her own custom sign business where she sells a sign for $80 a piece. She has been able to sell 20 signs per month. Her costs of materials to make the signs is $15 and she is paying sales tax of $4 per sign. In addition, she purchased online ads for $300 per month and pays for printing of $100 per month. To be able to run the business, Jordan has reduced her hours so her salary fell from $3,000 per month to $2,600 per month and she no longer rents out the studio apartment at her home for $500 per month. Calculate the below for Jordan's monthly financial statement. Total Sales Revenue Total Explicit Cost Accounting Profit Total Implicit Cost Total Economic ProfitHow do you answer this question? Roxy the candle maker Roxy makes and sells scented candles in her shop and on-line. She also caters for functions such as parties, weddings etc. The candles cost $5 to make, and sell for $12. Roxy buys in the raw materials the month before she sells the candles. She pays a deposit of 20% when she orders and the rest the following month At the start of the year she owed $1,000 to supplier for the previous month Her customers pay 75% in the month of purchase and 25% the following month She pays rent of $1,000 on the shop in cash during the month before it is due She pays cash wages of $500 a month during the month Her other running costs are $900 a month, but this includes $200 for depreciation of the candle making machine In month 4 in the forthcoming year she intends to invest $5,000…
- Schoenen Motors is a small car dealership. On average it sells a car for $33,000, which it purchases from the manufacturer for $29,000. Each month, Schoenen Motors pays $66,000 in rent and utilities and $73,000 for salespeople's salaries. In addition to their salaries, salespeople are paid a commission of $700 for each car they sell. Schoenen Motors also spends $12,000 each month for local advertisements. Its tax rate is 40%. Required 1. How many cars must Schoenen Motors sell each month to break even? 2. Schoenen Motors has a target monthly net income of $64,500. What is its target operating income? How many cars must be sold each month to reach the target monthly net income of $64,500? Requirement 1. How many cars must Schoenen Motors sell each month to break even? Schoenen Motors must sell cars each month to break even. (Round the number of cars up to the nearest whole number.) Requirement 2. Schoenen Motors has a target monthly net income of $64,500, What is its target operating…Radien runs her own hot dog stand on the U of A campus. The monthly cost of the cart rental and business permit is $1,100. Raiden spends $2.50 on each hot dog sold, including bun and condiments. She sells each hot dog for $5.00. 1. What is the contribution margin per unit? 2. What is the contribution margin ratio? 3. Predict operating income for a month in which Raiden sells 1,300 hot dogsJennifer took clothes to the cleaners three times last month. First, she brought 3 shirts and 1 pair of slacks and paid $8.46. Then she brought 5 shirts, 3 pairs of slacks, and 1 sports coat and paid $26.91. Finally, she brought 5 shirts and 1 sports coat and paid $14.94. How much was she charged for each shirt, each pair of slacks, and each sports coat? Jennifer was charged $ for each shirt. $ for each pair of slacks, and $ for each sports coat.
- Schoenen Motors is a small car dealership. On average, it sells a car for $27,000, which it purchases from the manufacturer for $23,000. Each month, Schoenen Motors pays $48,200 in rent and utilities and $68,000 for salespeople's salaries. In addition to their salaries, salespeople are paid a commission of $600 for each car they sell. Schoenen Motors also spends $13,000 each month for local advertisements. Its tax rate is 40%. Read the requirements. Requirement 1. How many cars must Schoenen Motors sell each month to break even? Schoenen Motors must sell cars each month to break even Requirement 2. Schoenen Motors has a target monthly net income of $51,000. What is its targeted monthly operating income? How many cars must be sold each month to reach the target monthly net income of $51,000? The target monthly operating income is They would need to sell cars to reach the target monthly income of $51,000.Ganja Motors is a small car dealership. On average, it sells a car for $54,000, which it purchases from the manufacturer for $46,000. Each month, Ganja Motors pays $96,400 in rent and utilities and $136,000 for salespeople’s salaries. In addition to their salaries, salespeople are paid a commission of $1200 for each car they sell. Ganja Motors also spends $26,000 each month for local advertisements. Its tax rate is 40%. How many cars must Ganja Motors sell each month to break even? Ganja Motors has a target monthly net income of $102,000. What is its target monthly operating income? How many cars must be sold each month to reach the target monthly net income of $102,000?Westover Motors is a small car dealership. On average, it sells a car for $32,000, which it purchases from the manufacturer for $28,000. Each month, Westover Motors pays $53,700 in rent and utilities and $69,000 for salespeople’s salaries. In addition to their salaries, salespeople are paid a commission of $400 for each car they sell. Westover Motors also spends $10,500 each month for local advertisements. Its tax rate is 40%. Q1. How many cars must Westover Motors sell each month to break even? Q2. Westover Motors has a target monthly net income of $69,120. What is its target monthly operating income? How many cars must be sold each month to reach the target monthly net income of $69,120?
- Kevin Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base salary of $1,440 per month. One of the barbers serves as the manager and receives an extra $565 per month. In addition to the base salary, each barber also receives a commission of $8.50 per haircut. Other costs are as follows. Advertising $250 per month Rent $1,100 per month Barber supplies $0.35 per haircut Utilities $150 per month plus $0.15 per haircut Magazines $35 per month Kevin currently charges $15.00 per haircut. (a) Determine the unit variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.) Total variable cost per haircut Total fixed costs $Kevin Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base salary of $1,440 per month. One of the barbers serves as the manager and receives an extra $565 per month. In addition to the base salary, each barber also receives a commission of $8.50 per haircut. Other costs are as follows. Advertising $250 per month Rent $1,100 per month Barber supplies $0.35 per haircut Utilities $150 per month plus $0.15 per haircut Magazines $35 per month Kevin currently charges $15.00 per haircut.Sheridan Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base rate of $ 1,570 per month. One of the barbers serves as the manager and receives an extra $ 500 per month. In addition to the base rate, each barber also receives a commission of $ 9.05 per haircut. Other costs are as follows. Advertising $ 270 per month Rent $ 1,060 per month Barber supplies $0.45 per haircut Utilities $ 195 per month plus $ 0.10 per haircut Magazines $ 15 per month Sheridan currently charges $ 16 per haircut. Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.) Total variable cost per haircut 2$ 9.6 Total fixed 24 8320 eTextbook and Media Compute the break-even point in units and dollars. Break-even point haircuts Break even sales 2$ eTextbook and Media Determine net income, assuming 1,590 haircuts are given in a month. Net income / (Loss) $