W3Chapters678 - Lydia Holmes Chapter 6, Exercise 6-31...

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Lydia Holmes Chapter 6, Exercise 6-31 Easecom Company Income Statement For Year Ended December 31, 2007 (in thousands) Revenues $6,600 1. Selling p Equipment $6,000 $1,800 Maintenance and Contracts 1,800 $6,996 2. Equipme Total Revenues $7,800 $1,908 Cost of Goods Sold 4,600 4,738 3. Cost of e Gross Margin 3,200 $850 4. Marketin Operating Costs $159 5. Distribut Marketing 600 $1,130 6. Two ma Distribution 150 - 7. There is Customer maintenance 1,000 Administration 900 Total operating costs 2,650 Operating income $550 Easecom Comp Budget Income Sta For Year Ending December 31, Revenues Equipment Maintenance Contracts Total Revenues Cost of Goods Sold Gross Margin Operating Costs Marketing Distribution Customer maintenance Administration Total operating costs Operating income
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prices of equipment are expected to increase by 10%. The selling price of each maintenance contract is expected to remain unchanged ent sales in units are expected to increase by 6%, with a corresponding 6% growth in units of maintenance contacts. each unit sold is expected to increase by 3% to pay for necessary technology and quality improvemen ing costs are expected to increase by $250,000, but administration costs are expected to remain the sa tion costs vary in proportion to the number of units of equipment sold. aintenance techs are to be hired at a total cost of $130,000. s no beginning or ending inventory of equipment. pany atement , 2008 (in thousands) $6,996 1,908 $8,904 4,738 5022 4,166 850 159 1,130 900 3,039 $1,127
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nts. ame.
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Lydia Holmes Chapter 6, Exercise 6-35 Direct Materials and Direct Manufacturing Labor Utilization and Cost Units / Board Price / Unit Unit Wood 5 $30 Board feet Fiberglass 6 $5 Yard Direct Manufacturing Labor 5 $25 Hour Projected Sales (units) May 80 August 100 June 120 September 60 July 200 October 40 ( a ) Beginning cash balance for July 1,2007 $10,000 ( e ) Marketing costs driven by # sales visits - 0 during month studied $- ( f ) Fixed manufacturing overhead costs per month $5,500 ( g ) Fixed non-manufacturing overhead costs per month $2,500 1. Cash Budget for July through September 2007 Slopes Inc. Cash Budget July August September Cash balance, beginning (a) $10,000 $5,650 $40,100 Add receipts Collections from customers (b) $55,800 $70,200 $54,900 Total cash available for needs $65,800 $75,850 $95,000 Deduct disbursements Variable man. overhead (d) $3,500 $2,100 $1,400 Fixed man. overhead (f) $5,500 $5,500 $5,500 Fixed non-man. overhead (g)
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W3Chapters678 - Lydia Holmes Chapter 6, Exercise 6-31...

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