Angies Pies is a producer of a wide variety of pies that sell in the Midwest in

Question:

Angie’s Pies is a producer of a wide variety of pies that sell in the Midwest in grocery stores and convenience stores. Each pie retails for $8.79. Angie’s sold 1 million pies in the last year. The income statement and balance sheet for the company are in the following tables.


REQUIRED:

a. What is the profit margin in dollar terms and as a percentage?

b. Compute asset intensity.

c. Compute leverage.

d. Compute ROE.

e. Compute contribution margin per unit.

f. Compute annual fixed cost base.

g. Compute breakeven point in sales units.

h. What is the profit earned in one year?

i. What are the days of inventory on hand?

j. What are the accounts receivable days?

k. What is the fixed asset turnover ratio?

l. What is the fixed cost percentage of sales for manufacturing?

m. What is the fixed cost percentage of sales for SG&A?

n. What is the gross margin percentage?

o. What is the selling and administrative cost percentage?

p. Is this firm doing well or not? Why?

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Managerial Accounting An Integrative Approach

ISBN: 9780999500491

2nd Edition

Authors: C J Mcnair Connoly, Kenneth Merchant

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