Carla Solutions is a small company that assembles PCs to gamer customer specifications. The company buys all of its component parts from Northern Oregon Computer Warehouse. In the past year, the company had the following before-tax profit: Sales Less: Cost of components Staff salaries Rent Utilities Advertising Operating profit before bonuses Less: Staff bonuses Profit before taxes and owner draw $814,000 252,000 41,000 8,000 7,000 $1,628,000 1,122,000 506,000 Sales level Profit before taxes and owner draw $ 151,800 $354,200 The company, owned by Steven Rich, has seven full-time employees. These employees are each paid a base salary of $36,000 per year. In addition, they share a bonus equal to 30 percent of operating profits before bonuses. Owner draw is the amount Steven pays himself out of company profits. The company is in the process of planning profit for the coming year. Northern Oregon Computer Warehouse has agreed that their prices to Carla Solutions will be reduced by 20 percent on all purchases over $816,000. Estimate profit before taxes and owner draw for five levels of sales: $1,532,000; $1,682,000; $1,827,000; $1,885,000; and $1,948,000. (Round answers to the nearest whole dollar, e.g. 5,275.) $1,532,000 354200 $1,682,000 320600 $1,827,000
Carla Solutions is a small company that assembles PCs to gamer customer specifications. The company buys all of its component parts from Northern Oregon Computer Warehouse. In the past year, the company had the following before-tax profit: Sales Less: Cost of components Staff salaries Rent Utilities Advertising Operating profit before bonuses Less: Staff bonuses Profit before taxes and owner draw $814,000 252,000 41,000 8,000 7,000 $1,628,000 1,122,000 506,000 Sales level Profit before taxes and owner draw $ 151,800 $354,200 The company, owned by Steven Rich, has seven full-time employees. These employees are each paid a base salary of $36,000 per year. In addition, they share a bonus equal to 30 percent of operating profits before bonuses. Owner draw is the amount Steven pays himself out of company profits. The company is in the process of planning profit for the coming year. Northern Oregon Computer Warehouse has agreed that their prices to Carla Solutions will be reduced by 20 percent on all purchases over $816,000. Estimate profit before taxes and owner draw for five levels of sales: $1,532,000; $1,682,000; $1,827,000; $1,885,000; and $1,948,000. (Round answers to the nearest whole dollar, e.g. 5,275.) $1,532,000 354200 $1,682,000 320600 $1,827,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Carla Solutions is a small company that assembles PCs to gamer customer specifications. The company buys all of its component parts
from Northern Oregon Computer Warehouse. In the past year, the company had the following before-tax profit:
Sales
Less:
Cost of components
Staff salaries
Rent
Utilities
Advertising
Operating profit before bonuses
Less:
Staff bonuses
Profit before taxes and owner draw
$814,000
252,000
41,000
8,000
7,000
$1,628,000
1,122,000
506,000
Sales level
Profit before taxes and owner draw $
151,800
$354,200
The company, owned by Steven Rich, has seven full-time employees. These employees are each paid a base salary of $36,000 per year.
In addition, they share a bonus equal to 30 percent of operating profits before bonuses. Owner draw is the amount Steven pays himself
out of company profits.
The company is in the process of planning profit for the coming year. Northern Oregon Computer Warehouse has agreed that their
prices to Carla Solutions will be reduced by 20 percent on all purchases over $816,000.
Estimate profit before taxes and owner draw for five levels of sales: $1,532,000; $1,682,000; $1,827,000; $1,885,000; and
$1,948,000. (Round answers to the nearest whole dollar, e.g. 5,275.)
$1,532,000
354200
$1,682,000
320600
$1,827,000
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