Nielsen's fine clothing store
you are the owner of a general retail clothing store. belo...
Business, 15.12.2019 22:31 kenziesanders01
Nielsen's fine clothing store
you are the owner of a general retail clothing store. below is the income statement for last year which is not expected to change at all during the upcoming fiscal year. you have one full time manager, two three quarter time assistant managers and 3 part time clerks. you have had the manager and assistant managers for the past five years. five years ago sales were only 350,000 dollars. as sales have increased you have added the part time clerks. you anticipate adding more clerks as sales increase in the future. you pay you credit card vendor 1 percent of sales. bad debt expense and shrinkage are also estimated as a percentage of sales. the mall common area payment must be paid regardless of how many sales you make. in addition, your ex-husband must get paid alimony and child support each month (which you pay from the owner's salary).
1. calculate the pretax breakeven point from the formula in the online lecture on breakeven analysis. (20 points)
2. what happens to your breakeven point if your primary supplier of clothing raises prices 5%? you buy 45% of your clothing from this company. (10 points)
3. your manager has received an offer of employment from a competitor. she would make 25% more than you are paying her now. if you match this offer, what is the impact upon your breakeven point (what will the new breakeven point be) ? (10 points)
show the calculations with your answers.
data for analysis.
first step: determine which expense items are fixed and which are variable. identify which are fixed and which are variable. i do not expect you to make the same assumptions i would make. you are graded on the application of the breakeven formula to the data as you have analyzed it.
second step: calculate the breakeven sales using the formula in the online lecture.
third step: changing the inputs (in problem 2 and 3) and recalculating the breakeven sales.
revenues $650,000
expenses:
managers's salaries & benefits 25,000
asst. managers' wages 35,000
clerical wages 29,000
owner's salary 55,000
rent (4% of gross revenue) 13,000
mall common area payment 25,000
phone bill 5,000
property insurance 7,000
property taxes 5,000
office supplies 2,000
postage 500
equipment expenses 5,000
shrinkage 4,000
bad debt expense 15,000
credit card expense 6.500
wholesale clothing purchases 380,000
total expenses 612,000
net operating income 38,000
Answers: 1
Business, 22.06.2019 10:30
Which maxim is being neglected in the following conversation? eli: how did you do at the track meet? caleb: i came in second place! eli: congratulations! what was your time? caleb: six minutes, four seconds. the guy who won only beat me by three seconds. eli: really? katie said the winning time was under 6 minutes. caleb: oh, well, he might have beat me by five seconds. a)maxim of quantity b)maxim of quality c)maxim of relevance d)maxim of manner
Answers: 1
Business, 22.06.2019 14:40
Increases in output and increases in the inflation rate have been linked to
Answers: 2
Business, 22.06.2019 15:00
Portia grant is an employee who is paid monthly. for the month of january of the current year, she earned a total of $8,388. the fica tax for social security is 6.2% of the first $118,500 earned each calendar year and the fica tax rate for medicare is 1.45% of all earnings. the futa tax rate of 0.6% and the suta tax rate of 5.4% are applied to the first $7,000 of an employee's pay. the amount of federal income tax withheld from her earnings was $1,391.77. what is the total amount of taxes withheld from the portia's earnings?
Answers: 2
Business, 22.06.2019 20:00
Afirm is producing at minimum average total cost with its current plant. draw the firm's long-run average cost curve. label it. draw a point on the lrac curve at which the firm cannot lower its average total cost. draw the firm's short-run average total cost curve that is consistent with the point you have drawn. label it.g
Answers: 2
History, 24.12.2019 06:31
History, 24.12.2019 06:31
Biology, 24.12.2019 06:31
Mathematics, 24.12.2019 06:31
Physics, 24.12.2019 07:31
History, 24.12.2019 07:31