Your boss has been tasked with deciding whether to open a new branch or not. He has
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Question:
Your boss has been tasked with deciding whether to open a new branch or not. He has asked your opinion. Mostly likely you will be given management of the branch if it opens. Write a memo explaining why or why not the branch should be opened. The pro forma balance income statement is:
Revenue | |||
Revenue from sales | $1,500,000 | ||
Operating Expenses | |||
Cost of materials | $750,000 | ||
Selling Expense | $150,000 | ||
Salaries | $350,000 | ||
Other Operating Expenses | $50,000 | ||
Total Operating Expenses | $1,300,000 | ||
Income from Operations | $200,000 | ||
Headquarters Overhead | $100,000 | ||
Taxes | $ 150,000 | ||
Net Income | -$ 50,000 |
Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
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