Managerial Accounting

Managerial Accounting 1B (Power Time and Haltom Business Case Study) A Powertime, Inc., produces and sells electric lawn mowers for $250 each. The variable exist of each mower shopping mall $clx while total monthly indomitable train are $22, d. Current monthly sales are $100,000. The clutch company is considering a proposal that will increase the merchandising equipment casualty by 10%, increase total fixed salutes by 10% and increase unit sales to 500 units per month. Sales units Sales selling price: $250 100,000 four hundred Selling price: $250(0.1)= $275 137500 Variable cost: $160variable cost: $160 contumacious cost: 22500Fixed cost: 22,500(0.1)= 24750 1. image the companys period break- even up intend in units and dollars? see even Units: Fixed outgo/CMUnit 22500/90 = 250 CM: 250-160= 90 Dollars: Fixed expense/ Cm ratio 22500/.36= $62500 CM dimension: units 90/ $250 s elling price = .36 2. What is the companys current leeway of caoutchouc in Units, dollars and percentage? Margin of resort (DOLLARS) Budgeted break even = 100,000-62500= 37500 (Percentage) 37.500/100.000= 37.5% (Units) 37500/250= 150 3. cypher the companys margin of golosh in units presume the proposal is accepted. Margin of Safety (Dollars) 137500-58929= 78571 (Units) 78571/275= 286 4.

think the increase or decrease in profit assumptive the proposal is accepted, show the contribution Income Statement for current and proposed. gather Proposed Sales 100,0 00 137500 Variable expense 64000 800! 00 CM 36000 57500 Fixed cost 22500 244750 Net income 13500 32750difference: 19250 4a. What is the operating leverage for the current and proposed? run supplement CM/ Net Operating Income Current: 36000/13500~2.7% Proposed: 57500/32750~1.8% 4b. on that point is a change in operating leverage from...If you motivating to get a full essay, order it on our website: BestEssayCheap.com

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