CBH Company - Need help with: Sales Budget, Purchases Budget, Cost of Sales, Selling and Administrative Expense Budget, and Income Statement. NO EXPLANATIONS NEEDED - CHART WORK

 

 

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1. What is the breakeven point in units sold? What is the breakeven point in sales dollars? 2. How many units need to be sold to earn an aftertax profit of $ 500,000. Assume a tax rate of 3. What is the margin of safety in $? 4. If sales were to increase by 15% in 2023 from 2022 projected levels and expense behaviour remains the same for 2023 as in 2022, how much will net income before tax and interest increase by as a percentage. Use operating leverage to answer this. 5.00% 5. If CBH spend $ 50,000 on an advertising campaign, it believes sales (units) will increase without any change in average selling price. Should it take on the advertising? Why or why not? Submission Information: Once the project is complete submit this file (one per group) in the appropriate submission folder on FOL. Due date for this project is November 28, 2021 Additional details: Below you will see yellow data boxes labeled with the letters A through M. Your instructor will provide your group with the data to enter into these boxes. This data set is unique to your group, so make sure you enter the data correctly. 435 Average estimated selling price per electric bike is There are 1,725 bicycles in Bike Inventory at the end of 2021 with a value of $ 300,000 At the end of each quarter, CBH Company wishes to have units in Bike Inventory. At the end of 2022 assum 75% of next quarters estimated sales 2,000 bikes are required in ending inventory 75% of sales will be cash and 25% will be credit sales. For each quarter, it is estimated that of the credit sales, 80% pay in the quarter of the sale and 20% pay in the following quarter. Credit sales from Q4 2021 were $430,000 Assume operating expenses occur evenly throughout the year and are all paid in cash. For each quarter, the purchase and Q4 2021 were 70% of Bike purchases are paid for in cash in the quarter of 30% are paid in the following quarter. Total bike purchases in $510,000 The expected average purchase price of a bike in 2022 is CBH Company will pay $60,000 in dividends in Q4 2022. The cash balance in the bank at the end of 2021 is $ 10,000 minimum cash balance of $10,000 in the bank for each quarter. 2021 2020 2019 2018 30% CBH Company wishes to maintain a $ 175,130 12585 12905 179,975 11385 177,225 8175 137,145 Budgeted 2022 sales volumes in units for each quarter are: Q1 2,300 Q2 2,300 Q3 4,400 • Selling and Administration expenses for the budgeted year are as follows; Sales Wages: Sales wages are a mixed cost (salary and commissions). CBH Company plans on estimating these costs for 2022 based on actual historical data using the high-low method. Here are the total sales in units and the total sales wages expense for the last 4 years. Units sold Q4 3,200 285 1. What is the breakeven point in units sold? What is the breakeven point in sales dollars? 2. How many units need to be sold to earn an aftertax profit of $ 500,000. Assume a tax rate of 3. What is the margin of safety in $? 4. If sales were to increase by 15% in 2023 from 2022 projected levels and expense behaviour remains the same for 2023 as in 2022, how much will net income before tax and interest increase by as a percentage. Use operating leverage to answer this. 5.00% 5. If CBH spend $ 50,000 on an advertising campaign, it believes sales (units) will increase without any change in average selling price. Should it take on the advertising? Why or why not? Submission Information: Once the project is complete submit this file (one per group) in the appropriate submission folder on FOL. Due date for this project is November 28, 2021 Additional details: Below you will see yellow data boxes labeled with the letters A through M. Your instructor will provide your group with the data to enter into these boxes. This data set is unique to your group, so make sure you enter the data correctly. 435 Average estimated selling price per electric bike is There are 1,725 bicycles in Bike Inventory at the end of 2021 with a value of $ 300,000 At the end of each quarter, CBH Company wishes to have units in Bike Inventory. At the end of 2022 assum 75% of next quarters estimated sales 2,000 bikes are required in ending inventory 75% of sales will be cash and 25% will be credit sales. For each quarter, it is estimated that of the credit sales, 80% pay in the quarter of the sale and 20% pay in the following quarter. Credit sales from Q4 2021 were $430,000 Assume operating expenses occur evenly throughout the year and are all paid in cash. For each quarter, the purchase and Q4 2021 were 70% of Bike purchases are paid for in cash in the quarter of 30% are paid in the following quarter. Total bike purchases in $510,000 The expected average purchase price of a bike in 2022 is CBH Company will pay $60,000 in dividends in Q4 2022. The cash balance in the bank at the end of 2021 is $ 10,000 minimum cash balance of $10,000 in the bank for each quarter. 2021 2020 2019 2018 30% CBH Company wishes to maintain a $ 175,130 12585 12905 179,975 11385 177,225 8175 137,145 Budgeted 2022 sales volumes in units for each quarter are: Q1 2,300 Q2 2,300 Q3 4,400 • Selling and Administration expenses for the budgeted year are as follows; Sales Wages: Sales wages are a mixed cost (salary and commissions). CBH Company plans on estimating these costs for 2022 based on actual historical data using the high-low method. Here are the total sales in units and the total sales wages expense for the last 4 years. Units sold Q4 3,200 285

Answer rating: 100% (QA)

1 What is the breakeven point in units sold What is the breakeven point in sales dollars To calculate the breakeven point we need to first calculate the contribution margin per unit and the fixed cost... View the full answer