the follo wing information is available for20x5 for apollo products revenu(100,0
ID: 2374285 • Letter: T
Question
the follo wing information is available for20x5 for apollo products
revenu(100,000 units) $ 740,000
manufacturing cost
material unit level $ 42,000
unit level variable overhead cash costs 35,600
facility level fixed overhead cash costs 81,900
depriciation facility level 230,000
marketing and administrative cost
marketing unit level cash 105,600
marketing depriciation 41,000
administrative facility level cash 127,300
administrative depriciation 18,700
total costs $ 682,100
operating profit $ 57,900
all depriciation chargers are facility level costs and are expeted to remain the same for 20x6 . sales voluom expected to increase by 18 percent but price are expected to fall by 5 percent material costs are expected to increase by 8 percent , unit level variable manufacturing overhead cost are expected to decrease by 2 percent per unit and facility level fixed manufaturing overhead cost are expected to increase by 5 percent , unit level variable marketing cost change with volume , administrative cash cost expected to increase by 10 percent inventories are kept zero
A prepare budget income statment for 20x6
B estimate the cash from operations expected in 20x6
Explanation / Answer
Budget Income Statement
Unit (100000+100000*18/100) 118000
Price per unit 740000/100000=7.4-7.4*5/100=7.03
Revenue = 118000*7.03= 829540
manufacturing material=42000*1.18*1.08= 53524.8
variable overhead=35600*0.98*1.18= 41,167.84
fixeed overhead= 81900+81900*5/100= 85995
depreciation= 230000
marketing and adminstrative= 124608
marketing depreciation= 41000
administrative=127300+127300*10/100= 140030
administrative depreciation= 18700
total cost= 735025.64
Profit= 94514.36
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