If Sandlands Vineyard decided to buy the building for 500,000, how would this income statement and balance
Fantastic news! We've Found the answer you've been seeking!
Question:
If Sandlands Vineyard decided to buy the building for 500,000, how would this income statement and balance sheet change?
Transcribed Image Text:
Exhibit 7 Typical Profitability and Cost Structure of a Small Premium Winery (2,000 cases) Distribution Channel Direct Wholesale Revenue Channel Mix Price per Bottle Wgtd Avg. Price Price per Case # of Cases Total Revenue Operating Costs Variable Costs Labor Packaging Grapes Barrels/Equipment Excise Taxes Marketing Mobile Bottling Other Costs Total Variable Cost Fixed Costs Property Taxes Insurance & Maint. Depreciation Total Fixed Cost Total Operating Costs Notes: Percent Fixed Operating Profit Operating Margin 70% $16.00 $11.20 Grape Cost per Ton (@65 cases/ton) Capital Investment 30% $8.00 $2.40 Winery Total $13.60 $163.20 2,000 $326,400 Winery Total $70,000 $50,000 $40,000 $38,000 $12,000 $10,000 $8,000 $6,000 $234,000 $8,000 $4,000 $72,000 $84,000 $318,000 26% $8,400 2.6% $1,300 $600,000 Per Case $35.00 $25.00 $20.00 $19.00 $6.00 $5.00 $4.00 $3.00 $117.00 $4.00 $2.00 $36.00 $42.00 $159.00 $4.20 $300.00 Exhibit 7 Typical Profitability and Cost Structure of a Small Premium Winery (2,000 cases) Distribution Channel Direct Wholesale Revenue Channel Mix Price per Bottle Wgtd Avg. Price Price per Case # of Cases Total Revenue Operating Costs Variable Costs Labor Packaging Grapes Barrels/Equipment Excise Taxes Marketing Mobile Bottling Other Costs Total Variable Cost Fixed Costs Property Taxes Insurance & Maint. Depreciation Total Fixed Cost Total Operating Costs Notes: Percent Fixed Operating Profit Operating Margin 70% $16.00 $11.20 Grape Cost per Ton (@65 cases/ton) Capital Investment 30% $8.00 $2.40 Winery Total $13.60 $163.20 2,000 $326,400 Winery Total $70,000 $50,000 $40,000 $38,000 $12,000 $10,000 $8,000 $6,000 $234,000 $8,000 $4,000 $72,000 $84,000 $318,000 26% $8,400 2.6% $1,300 $600,000 Per Case $35.00 $25.00 $20.00 $19.00 $6.00 $5.00 $4.00 $3.00 $117.00 $4.00 $2.00 $36.00 $42.00 $159.00 $4.20 $300.00
Expert Answer:
Answer rating: 100% (QA)
If sand lands Vinessed decided to buy building for 500000 how would ... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0077862268
2nd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
Students also viewed these accounting questions
-
Required a. Use professional judgment in deciding on the preliminary judgment about materiality for earnings, current assets, current liabilities, and total assets. Your conclusions should be stated...
-
WSU Small Business Booster Every year, Robin identifies a small business to invest her money in because she wants to support companies that WSU students have started. Robin named the program WSU...
-
Graces Art Shop, Inc., sells vintage books. The firms comparative income statement and balance sheet for the years 2018 and 2019 follow: INSTRUCTIONS 1. Prepare both a horizontal and a vertical...
-
In Exercises find a power series for the function, centered at c and determine the interval of convergence. f(x) 2 6 - x' C = -2
-
Each of the following situations involves a possible violation by a member in industry of the AICPAs Code of Professional Conduct. For each situation, indicate whether it violates the Code. If it...
-
Three point charges are arranged as shown in Figure P23.19. (a) Find the vector electric field that the 6.00-nC and "3.00-nC charges together create at the origin. (b) Find the vector force on the...
-
Smart Manufacturing Systems Pty Ltd provides the following information. Required (a) Calculate total manufacturing costs for the period ending 30 June 2025. (b) Calculate cost of goods manufactured...
-
(Various Time Value Situations) Using the appropriate interest table, provide the solution to each of the following four questions by computing the unknowns. (a) What is the amount of the payments...
-
The graph of a function f is given. (Enter your answers as comma-separated lists.) x (a) At what numbers a does lim f(x) not exist? a= x-a (b) At what numbers a is f not continuous? a = (c) At what...
-
Suppose this morning SPB Ltd., a solar panel and battery manufacturing company, paid a dividend of $5 per share. At 10 a.m. SPB announced its latest earnings results (which were unexpectedly good)...
-
Compare ISDs COQ system to M&Cs system. Why do you think they are so different?
-
1. Maximum allowed shift hours for part-time and full-time workers. 2. Mandatory breaks between shifts. 3. Leave including shift workers.
-
Suppose The Pancake House's preferred stock pays an annual dividend of $4.29 per share. How much are you willing to pay for one share if you require a 9% rate of return? (Round your answer to two...
-
About management theory and processes, explain the key similarities and differences between power and empowerment using appropriate examples.
-
Bourne Incorporated reports a cash balance at the end of the month of $2,270. A comparison of the company's cash records with the monthly bank statement reveals several additional cash transactions:...
-
Differentiate logistics and supply chain. What are the similarities between the two concepts?In what ways are they different? Provide examples include justification and support.
-
The analysis of the first eight transactions of Advanced Accounting Service follows. Describe each transaction. ASSETS Cash + Accounts + Equipment Receivable 1 2 Bal. $31,000+ 3 Bal. 4 Bal. 5 +31,000...
-
A company pledges their receivables so they may Multiple Choice Charge a factoring fee. Increase sales. Recognize a sale. Collect a pledge fee. Borrow money. Failure by a promissory notes' maker to...
-
On January 1, 2012, Tropical Paradise borrows $40,000 by agreeing to a 6%, five-year note with the bank. The funds will be used to purchase a new BMW convertible for use in promoting resort...
-
Named in honor of the late Dr. F. C. "Phog" Allen, the Kansas Jayhawks' head coach for 39 years, Allen Fieldhouse is labeled by many as one of the best places in America to watch a college basketball...
-
Below are the restated amounts of net income and retained earnings for Volunteers Inc. and Raiders Inc. for the period 2003-2012. Volunteers began operations in 2004. Required: Calculate the balance...
-
Find the mode of the weights listed in Example 1. Data from Example 1 The weights (in pounds) for a sample of adults before starting a weight-loss study are listed. What is the mean weight of the...
-
At a political debate, a sample of audience members were asked to name the political party to which they belonged. Their responses are shown in the table. What is the mode of the responses? Political...
-
The table at the left shows the sample ages of students in a class. Find the mean, median, and mode of the ages. Are there any outliers? Which measure of central tendency best describes a typical...
Study smarter with the SolutionInn App