2a Hallstead Jewelers Quantitative Analysis Assignment

2a Hallstead Jewelers Quantitative Analysis Assignment -...

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Hallstead Jewelers Quantitative Analysis Assignment 1. Convert the Income Statement shown in Exhibit 1 from the Traditional (Financial Accounting) Format to a Contribution (Managerial Accounting) Format for the years 2003, 2004, and 2006. Assume the only variable costs are “Cost of Goods Sold” and “Sales Commissions”. All other expenses should be treated as fixed costs. 2. Calculate the Breakeven Points in “Number of Sales Tickets” and in “Sales Dollars” for the years 2003, 2004, and 2006. 3. Consider if we reduced prices to increase the volume of sales tickets. If we reduced prices by 10%, resulting in an increase in the number of sales tickets to 7500, and all variable costs per unit and fixed costs remained the same as in 2006, prepare a Contribution Format Income Statement to show the results of these changes. Also, calculate the Breakeven Points in “Number of Sales Tickets” and in “Sales Dollars” under this scenario. 4.
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This note was uploaded on 10/20/2011 for the course ACC 222 taught by Professor Brewer during the Spring '08 term at Miami University.

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2a Hallstead Jewelers Quantitative Analysis Assignment -...

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