Build_a_Spreadsheet_15_43 - DATA INPUT Sales Revenue Less...

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DATA INPUT Sales Revenue $25,000 Less Sales Commission $2,500 Sales Commission 10% Net Sales $22,500 Expenses: Direct Material $6,000 Direct Labor $7,500 Manufacturing Overhead-variable $2,250 Manufacturing Overhead-fixed $1,500 Corporate Administration-fixed $750 Total Costs $18,000 Income before Taxes $4,500 Income Taxes $1,800 Tax Rate 40% Net Income $2,700 Capacity Utilization 75% Premier Foods Bid Estimated direct material $29,200 Estimated direct labor $56,000 Estimated manufacturing overhead $28,000 Cost Driver : Labor 50% Estimated corporate overhead $5,600 Cost Driver : Labor 10% Estimated total costs excluding sales commision $118,800 Add 25% for profit and taxes $148,500 Suggested total price adjusting for sales commission $165,000 SOLUTION 1. The order will boost Graydon's net income by $27,900 as the following calculations will show Sales Revenue $165,000 Less Sales Commission $16,500 $148,500 Less Manufacturing costs Direct Material $29,200 Direct Labor $56,000 Variable Manufacturing Overhead*
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