Retail Marketing Financial

Milligan’s Backyard Storage Kits, a mail order company, sells a variety of backyard storage unit kits and landscaping decorations to its customers. Although the company makes a profit, David Milligan, the company’s owner, realizes that he can improve his company’s operations if he better manages his inventory. Mr. Milligan requests your help in preparing an Inventory Analysis worksheet. The Inventory Analysis worksheet provides Mr. Milligan with information about his annual sales, cost of goods sold, gross profit, and markup on this products. Preparing the worksheet for Mr. Milligan requires you to insert columns, use several functions, and apply proper formatting to the

Second, the manufacturing order costs for non-stocked items was calculated by dividing total manufacturing order costs for non-stocked items by the number of orders for non-stocked products. Non-stocked products have additional costs associated with processing orders that went above and beyond the costs associated with a stocked product. The third step involved determining what the S"A allocation factor would be for calculating the S"A volume related costs. This allocation factor would then be applied to manufacturing COGS. The fourth and final step involved the calculation of the operating profit based on backing out volume related costs from sales revenues followed by deducting S"A and manufacturing order costs from the resulting gross margin to arrive at a operating profit.

Operating Income = Sales – Variable manufacturing cost – variable non manufacturing cost – fixed manufacturing costs – fixed non manufacturing costs.

| (TCO B) The Congress Company has identified two methods for producing playing cards. One method involves using a machine having a fixed cost of $10,000 and variable costs of $1.00 per deck of cards. The other method would use a less expensive machine (fixed cost = $5,000), but it would require greater variable costs ($1.50 per deck of cards). If the selling price per deck of cards will be the same under each method, at what level of output will the two methods produce the same net operating income (EBIT)?

a. Assume the company's monthly target profit is $16,060. Determine the unit sales to attain that target profit. Show your work!

17. A business produces 8 items and sells them for $25 each. The total cost of producing the items is $190 for explicit costs and $200 for implicit costs. Accounting profit is:

2. Gross Profit - L&L had gross profit (net sales less cost of sales) of $28 million in 2011 and $30.4 million in 2012; an increase of $2.4 million (8.6 % increase)

Upon calculation of all the numbers, it was determined that the company gained an operating profit of $94,500. The company’s biggest expense was the general administrative and operating costs, totaling $515,000. Other costs involved were variable costs ($765,000 total) and direct fixed costs ($253,000 total). Additionally, the breakeven point in revenue was $1,533,000. It was also determined, in that year, that a minimum of 21 concerts must have been performed to reach each individual dance concert’s breakeven point.

Milligan’s Backyard Storage Kits, a mail order company, sells a variety of backyard storage unit kits and landscaping decorations to its customers. Although the company makes a profit, David Milligan, the company’s owner, realizes that he can improve his company’s operations if he better manages his inventory. Mr. Milligan requests your help in preparing an Inventory Analysis worksheet. The Inventory Analysis worksheet provides Mr. Milligan with information about his annual sales, cost of goods sold, gross profit, and markup on this products. Preparing the worksheet for Mr. Milligan requires you to insert columns, use several functions, and apply proper formatting to the

Solen Company 's break-even point in sales is $900,000, and its variable expenses are 75% of sales. If the company lost $32,000 last year, sales must have amounted to:

Assume that the average total inventory per store for the entire 2003 fiscal year was ￥4 million, which is $0.3675 million

Non-stocked products have additional costs associated with processing orders that went above and beyond the costs associated with a stocked product. The third step involved determining what the S&A allocation factor would be for calculating the S&A volume related costs. This allocation factor would then be applied to manufacturing COGS. The fourth and final step involved the calculation of the operating profit based on backing out volume related costs from sales revenues followed by deducting S&A and manufacturing order costs from the resulting gross margin to arrive at a operating profit.

Inventory management is an important part of running a business. Having an accurate count of inventory along with how you record the inventory is important, especially when preparing financial documents. Inventory is considered an asset on the balance sheet, but information that is related to inventory, such as cost of goods sold, are also tracked on other financial reports such as the income statement. This data is factored into the information that is used when determining a company’s fiscal health. The type of inventory cost method a company chooses can have a significant impact on reported profits and tax liability. Without proper utilization of inventory management systems multiple issues could arise including misstated gross profits and net income.

0.00 00 1,909,575 X 1 1287708 X 1 4,432,214.25 Gross Margin 533, 886.75 1,909,57 5.00 363,605 4 1,287,708. 00 7,629,497.25 822,852 1,720,343.75 - Less: Admin costs Interest on debts Net income before taxes less income taxes (40%*44061 5.75)

440,000 Cost of goods sold Materials inventory Applied conversion costs 900,000 Applied conversion costs Cost of goods sold Conversion costs To closed under or over-applied conversion costs. 400,000 40,000 550,000 440,000 500,000 400,000 440,000 Problem 16-6 (a) No entry for materials purchased (b) Conversion costs