Reference no: EM131123004
Assume you have developed and tested a prototype electronic product and are about to start your new business. You purchase preprogrammed computer chips at $70 per unit. Other component costs include plastic casings at $15 per unit and assembly hardware at $5 per unit. Direct labor costs are $15 per hour and three units can be produced per hour. You intend to sell each unit at a 50 percent markup over the total costs of producing each unit. The plan is to produce 500 product units per month in January, February, and March. Sales are expected to be 200 units in January, 400 units in February, and 800 units in March.
A. Calculate the dollar amount of sales revenue expected in each month (i.e., January, February, and March) and for the first quarter of the year.
B. Prepare a cost of production schedule for January, February, and March.
C. Prepare a cost of goods sold schedule for each of the three months and for the first quarter of the year. Using your cost of goods sold estimates and the sales revenues expected in Part A, calculate the gross earnings for January, February, and March, as well as for the first quarter of the year.
D. Prepare an inventories schedule for January, February, and March.
|
Calculate each income statement item
: Calculate each income statement item for 2009 as a percent of the 2009 sales level. Make the same calculations for 2010. Determine which cost or expense items varied directly with sales for the two-year period.
|
|
Calculate castillo cash flow from financing activities
: Calculate Castillo's cash flow from operating activities for 2010. Calculate Castillo's cash flow from investing activities for 2010. Calculate Castillo's cash flow from financing activities for 2010.
|
|
Estimate the survival or ebdat breakeven amount
: Estimate the survival or EBDAT breakeven amount in terms of survival revenues necessary for the SubRay Corporation to break even next year. Assume that the product selling price is $50 per unit. Calculate the EBDAT breakeven point in terms of the num..
|
|
Calculate the dollar amount of sales revenue expected
: (a) Calculate the dollar amount of sales revenue expected in each month (i.e., April, May, and June) and for the second quarter of the year. (b) Prepare a cost of production schedule for April, May, and June.
|
|
Calculate the dollar amount of sales revenue expected
: Calculate the dollar amount of sales revenue expected in each month (i.e., January, February, and March) and for the first quarter of the year. Prepare a cost of production schedule for January, February, and March. Prepare an inventories schedule fo..
|
|
Describe three financial performance measures that d light
: Describe three financial performance measures that D.light’s venture investors might use to examine whether D.light is measuring up financially as it achieves its “lives touched” goals.
|
|
What is meant by breakeven drivers
: What is meant by breakeven drivers? Identify two important drivers affecting the amount of revenues needed for ventures to break even.
|
|
Describe and illustrate how an ebdat breakeven chart
: Describe and illustrate how an EBDAT (survival) breakeven chart is constructed.
|
|
What is a venture contribution profit margin
: What is a venture’s contribution profit margin?
|