Question: 1 . Which method should be used to establish the profit goal? ( 2 point ) ( Hint: Chapter 5 ) 2 . Assuming the
Which method should be used to establish the profit goal? pointHint: Chapter Assuming the return on investment method is used to set the profit goal, calculate the profit goal for the budget period. The net worth is $ pointHint: Chapter Forecast the cost structure of the Shield Sexton company for the budget period, with the actual income statement in previous year and the case data above. points Calculate the earnings required revenue to generate the profit goal. points Complete the column of company budget in Table points Prepare a budget for each profit center and fill the rest of Table pointsHint: Chapter Analyze the results of the profit center analysis done above by dropping the losing profit center. What is the expected company profit if the remaining profit centers are operating at capacity? points Select the appropriate allocation method of overhead and profit for each profit center. Why was each method chosen? pointsHint: Chapter Calculate the overhead and profit allocation rates for each method selected in Problem # above. points Shield Sexton prices a new work project. Direct costs shown on the bid summary sheet follow: direct labor $; direct material $; subcontracts $; and job overhead $ Complete the cost estimate by allocating overhead and profit to the project. Note: apply the choice made in Problem # above points
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