ACC202-Ch7-Exercise-4

ACC202-Ch7-Exercise- - Name Date Instructor Course Managerial Accounting Second Edition by James Jiambalvo Solving Managerial Accounting Problems

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FileName: d47cfa214ce4332aa079add14979bc02138e7541.xls, Tab: Exercise E7-4, Page 1 of 2, 06/07/2009, Name: Date: Instructor: Course: Exercise E7-4 Incremental Analysis Revenue $170,000 Less: Design supplies $10,000 Salary of Laura Nelson (owner) 72,000 Salary of Emily Holder (full time employee) 51,000 Rent 18,000 Utilities 4,000 Depreciation of office equipment 2,500 Printing of advertising materials 500 Advertising in Atlanta Home Magazine 2,000 Travel expenses other than depreciation of autos 1,000 Depreciation of company cars 8,000 169,000 Net income $1,000 Required: Calculate the impact of the exhibit on company profit. Should the company exhibit at the home show? In this solution, supplies and travel are assumed to vary with revenue. Supplies as a percent of revenue Percentage Travel as a percent of revenue Percentage Increase in revenue Amount Less: Title Amount Title Amount Title Amount Increase in profit Formula Narrative answer: Managerial Accounting
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ACC202-Ch7-Exercise- - Name Date Instructor Course Managerial Accounting Second Edition by James Jiambalvo Solving Managerial Accounting Problems

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