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##### Could you please answer the following: Requirem...

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Could you please answer the following: Requirement # 1 break- even point in terms of (a) sales units or (b) sales dollars Requirement # 3 Prepare a contribution margin income statement showing sales, variable costs, and fixed costs for Product HG ad the break- even point. Extreme Equipment Co. manufactures and markets a number of rope products. Management is considering the future of Product HG, a special rope for hang gliding, that has not been as profitable as planned. Since Product HG is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year?s plans call for a \$200 selling price per 100 yards of HG rope. Its fixed costs for the year are expected to be \$330,000, up to a maximum capacity of 20,000,000 yards of rope. Forecasted variable costs are \$170 per 100 yards of HG rope. Required 1. Estimate Product HG?s break-even point in terms of (a) sales units and (b) sales dollars. 2. Prepare a CVP chart for Product HG like that in Exhibit 22.14. Use 20,000,000 yards as the maximum number of sales units on the horizontal axis of the graph, and \$4,000,000 as the maximum dollar amount on the vertical axis. 3. Prepare a contribution margin income statement showing sales, variable costs, and fixed costs for Product HG at the break-even point. Also Please do the attach. Thank you 23-1 Troy Company prepares monthly budgets. The current budget plans for a September ending inventory of 38,000 units. Company policy is to end each month with merchandise inventory equal to a specified percent of budgeted sales for the following month. Budgeted sales and merchandise purchases for the three most recent months follow. (1) Prepare the merchandise purchases budget for the months of July, August, and september.(2) Compute the ratio of ending inventory to the next month's sales for each budget prepared in part 1.(3) How many units are budgeted for sale in October? Sales(Units) Purchases(Units) July........ 170,000 200,000 August...... 320,000 312,000 September..... 280,000 262,000 _________________________________________________________ 23-2 Franke Co. budgeted the following cash receipts and cash disbursements for the first three months of next year. Cash Receipts Cash Disbursmenets July......... \$525,000 \$484,000 February...... 411,000 350,000 March....... 456,000 520,000 According to a credit agreement with the company's bank, Franke promises to have a minimum cash balance of \$20,000 at each month-end. In return, the bank has agreed that the company can borrow up to \$160,000 at an annual interest rate of 12%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company has cash balance of \$20,000 and a loan balance of \$40,000 at January 1. Prepare monthly cash budgets for each of the first three months of next year.

Paper#3367 | Written in 18-Jul-2015

Price : \$25