rocedure: Identify cach cost as either a variable cost or fixed cost. For this example, we...

 

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rocedure: Identify cach cost as either a variable cost or fixed cost. For this example, we will assume that there are no mixed costs. ) Calculate the Contribution Margin %- (Sales Dollars-Variable Costs) Sales Dollars ) Calculate Break-even Point in Sale Dollars BEPS ) Calculate the Margin of Safety What does the Margin of Safety mean to the franchise owner? Fixed Costs CM% 5) What is the total sales needed to earn a pre-tax profit of $250,000? BEP Profit Sales= Fixed Costs + Pre-tax Profit CM% MOS Sales Dollars - BEP Sales 5) What is the total sales needed to earn an after-tax pre-tax profit of $200,000 assuming a 30% tax rate? Pre-tax Profit After Tax Profit/(1-tax rate) BEP-Profit Sales = Weakeness - Opportunities- 7) Come up with a few examples for each category of a SWOT Analysis of a McDonald's franchise? Strengths- Threats- Fixed Costs+ [Pre-tax Profit (1-tax rate)) CM% 8) Prepare a report to be submitted to your Finaincail Institution Loan Officer showing your original budget and flexible budg assuming 1) Sales increase by 10% and a 10% increase in Advertising Costs 2) Sales decrease by 20%- Not sales Food costs Paper costs Gross profit Controllable expenses: Crew payroll Manager payroll Payroll taxes Advertising Promotions Outside services Linen the U.S. Operating supplies Maintenance and repair Utilities Cash over/short Miscellaneous Profit after controllables Noncontrollable expenses: Rent and fees Legal and accounting Insurance Taxes and licenses Miscellaneous income and expenses Depreciation and amortization Interost expense Net nonproduct Total operating income GUTH $2,700,000 -$810,000 -$108,000 $1,782,000 -$540,000 -$108,000 -$54,000 -$108,000 -$13,500 -$27,000 -$5,400 -$27,000 -$40,500 -$81,000 -$2,700 -$13,500 $761,400 -$391,500 -$8,100 -$54,000 $27,000 -$2.700 -$94.500 $27,000 -$2.700 $153.90 rocedure: Identify cach cost as either a variable cost or fixed cost. For this example, we will assume that there are no mixed costs. ) Calculate the Contribution Margin %- (Sales Dollars-Variable Costs) Sales Dollars ) Calculate Break-even Point in Sale Dollars BEPS ) Calculate the Margin of Safety What does the Margin of Safety mean to the franchise owner? Fixed Costs CM% 5) What is the total sales needed to earn a pre-tax profit of $250,000? BEP Profit Sales= Fixed Costs + Pre-tax Profit CM% MOS Sales Dollars - BEP Sales 5) What is the total sales needed to earn an after-tax pre-tax profit of $200,000 assuming a 30% tax rate? Pre-tax Profit After Tax Profit/(1-tax rate) BEP-Profit Sales = Weakeness - Opportunities- 7) Come up with a few examples for each category of a SWOT Analysis of a McDonald's franchise? Strengths- Threats- Fixed Costs+ [Pre-tax Profit (1-tax rate)) CM% 8) Prepare a report to be submitted to your Finaincail Institution Loan Officer showing your original budget and flexible budg assuming 1) Sales increase by 10% and a 10% increase in Advertising Costs 2) Sales decrease by 20%- Not sales Food costs Paper costs Gross profit Controllable expenses: Crew payroll Manager payroll Payroll taxes Advertising Promotions Outside services Linen the U.S. Operating supplies Maintenance and repair Utilities Cash over/short Miscellaneous Profit after controllables Noncontrollable expenses: Rent and fees Legal and accounting Insurance Taxes and licenses Miscellaneous income and expenses Depreciation and amortization Interost expense Net nonproduct Total operating income GUTH $2,700,000 -$810,000 -$108,000 $1,782,000 -$540,000 -$108,000 -$54,000 -$108,000 -$13,500 -$27,000 -$5,400 -$27,000 -$40,500 -$81,000 -$2,700 -$13,500 $761,400 -$391,500 -$8,100 -$54,000 $27,000 -$2.700 -$94.500 $27,000 -$2.700 $153.90

Answer rating: 100% (QA)

1 Variable costs are costs that vary with the level of output such as the cost of raw materials Fixed costs are costs that do not vary with the level ... View the full answer