week 7 dq.xlsx - apparel $2,000,000 $1,200,000 $800,000 sales cost of goods sold gross profit direct expenses sales commission after sales warranty

week 7 dq.xlsx - apparel $2,000,000 $1,200,000 $800,000...

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apparel sales $2,000,000 cost of goods sold $1,200,000 gross profit $800,000 direct expenses sales commission $80,000 after sales warranty $100,000 total direct expenses $180,000 indirect expenses rent&utilities $60,000 liability insurance $80,000 total indirect expenses $140,000 operating income $480,000 rent&utilities liability insurance allocation base square feet sales apparel Jewelery square feet 30000 150000
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jewelery total apparel Jewelery $1,000,000 $3,000,000 sales commission 4% 9% $600,000 $1,800,000 after sales warranty 5% 6% $400,000 $1,200,000 $90,000 $170,000 $60,000 $160,000 $150,000 $330,000 $30,000 $90,000 $40,000 $120,000 $70,000 $210,000 $180,000 $660,000 tde+tide=540000 gross profit-540000 90000*30000\45000=60000 120000*2000000\3000000=800000
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CLA2 part 1 sales cost of goods sold gross profit direct expenses salaries insurance utilities depreciation maintainance total direct exp indirect exp salaries insurance depreciation office exp total indirect exp operating income lost revenue Vs cost saving trade off to see if closing department B is the right choice
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Unformatted text preview: loss in revenues saving in costs(except for indirect costs) cost of goods sold direct cost subtotal in order that closing dep B, be a right choice $30000 of indirect cost has to be eliminated upon clo realising that total indirect exp attributed to dep B is $39260,expecting ellimination of $30000 ou department A department B combined $800,000 $450,000 $1,250,000 $497,000 $291,000 $788,000 $303,000 $159,000 $462,000 $125,000 $88,000 $213,000 $20,000 $10,000 $30,000 $24,000 $14,000 $38,000 $21,000 $12,000 $33,000 $7,000 $5,000 $12,000 $197,000 $129,000 $326,000 $ 23,040 $ 12,960 $ 36,000 salaries $4,200 $1,800 $6,000 allocation base sales $10,500 $4,500 $ 15,000 $30,000 $20,000 $ 50,000 department A $67,740 $39,260 $ 107,000 sq ft 28000 no of emp 75 $38,260 ($9,260) $29,000 $450,000 $291,000 $129,000 $420,000 osure ut of the atrributed indirect cost may be not realistic insurance depreciation office exp sq ft sq ft no. of employees department B 12000 50 cla part 2...
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