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The liners sell, on average, for $3,200 each. The department's variable selling expenses are $279,000. The remaining selling expenses are fixed. All administrative expenses are fixed. Sixty percent of the cost of goods sold was variable with respect to the number of units. 1. Prepare a Contribution Margin Income Statement in proper form Using the Income Statement - Liner Department for First Quarter of Current Year. Show breakdown of all costs and calculations 2. What is the sales revenue ($) they need to achieve in order to break-even? ( 3. Calculate how many liners the company would need to sell IF it wanted to make TARGET profit of $3,300,000. 4. The Human Resources Manager argues that a $44,000 quarterly budget increase to purchase a Sales Training Tool would help to increase quarterly sales by $64,000. Should we increase the Sales Training budget? Show your work..

The liners sell, on average, for $3,200 each. The department's variable selling expenses are $279,000. The remaining selling expenses are fixed. All administrative expenses are fixed. Sixty percent of the cost of goods sold was variable with respect to the number of units. 1. Prepare a Contribution Margin Income Statement in proper form Using the Income Statement - Liner Department for First Quarter of Current Year. Show breakdown of all costs and calculations 2. What is the sales revenue ($) they need to achieve in order to break-even? ( 3. Calculate how many liners the company would need to sell IF it wanted to make TARGET profit of $3,300,000. 4. The Human Resources Manager argues that a $44,000 quarterly budget increase to purchase a Sales Training Tool would help to increase quarterly sales by $64,000. Should we increase the Sales Training budget? Show your work..

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer question 4 only with details

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The 4 x4 Shop Income Statement - Linear Department for First Quarter of Current Year Sales $9,600,000 Less cost of goods sold Gross margin Less operating expenses: Selling expenses Administrative expenses 1,190,000 2,309,000 Net income 4,227,500 5,372,500 $1,119,000 $3,063,500 The liners sell, on average, for $3,200 each. The department's variable selling expenses are $279,000. The remaining selling expenses are fixed. All administrative expenses are fixed. Sixty percent of the cost of goods sold was variable with respect to the number of units. 1. Prepare a Contribution Margin Income Statement in proper form Using the Income Statement - Liner Department for First Quarter of Current Year. Show breakdown of all costs and calculations 2. What is the sales revenue ($) they need to achieve in order to break-even? ( 3. Calculate how many liners the company would need to sell IF it wanted to make TARGET profit of $3,300,000.. 4. The Human Resources Manager argues that a $44,000 quarterly budget increase to purchase a Sales Training Tool would help to increase quarterly sales by $64,000. Should we increase the Sales Training budget? Show your work.
Transcribed Image Text:The 4 x4 Shop Income Statement - Linear Department for First Quarter of Current Year Sales $9,600,000 Less cost of goods sold Gross margin Less operating expenses: Selling expenses Administrative expenses 1,190,000 2,309,000 Net income 4,227,500 5,372,500 $1,119,000 $3,063,500 The liners sell, on average, for $3,200 each. The department's variable selling expenses are $279,000. The remaining selling expenses are fixed. All administrative expenses are fixed. Sixty percent of the cost of goods sold was variable with respect to the number of units. 1. Prepare a Contribution Margin Income Statement in proper form Using the Income Statement - Liner Department for First Quarter of Current Year. Show breakdown of all costs and calculations 2. What is the sales revenue ($) they need to achieve in order to break-even? ( 3. Calculate how many liners the company would need to sell IF it wanted to make TARGET profit of $3,300,000.. 4. The Human Resources Manager argues that a $44,000 quarterly budget increase to purchase a Sales Training Tool would help to increase quarterly sales by $64,000. Should we increase the Sales Training budget? Show your work.
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