QUESTION It is currently 4th December 2022. You receive the following email from: From: Sophia Grigg....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
QUESTION It is currently 4th December 2022. You receive the following email from: From: Sophia Grigg. Managing Director To: Finance Officer Subject: Various Issues Good morning. I was going to get in touch with Oleg Scragg, but as he's currently out on sick leave. Emily Queda suggested I could enlist your help. Firstly, there were some issues within the proposed budget. I recommend you have a look at this as soon as possible. I have a meeting with the Senior Management Team (SMT) later on today relating to various issues and would appreciate it if you could put together some briefing notes explaining: (1) Explain on the importance of Cost-Volume - Profit analysis. (2) Estimate the break-even point in unit and sales revenue for June 2022. (3) Assuming all costs are as budgeted, if the company desires to achieve gross profit of 70% for each type of athletic shoes, how many sales unit should we propose in the budget information. (4) Based on new sales unit proposed in (3) above, analyse the new break-even point in unit and value for each type of products since there will be an increase of 5% on the raw materials as I have just received information from Georgia, Head of purchasing. (5) Describe THREE (3) major steps in the control phase of budgeting. Considering the increased pressure for TreadCushy to remain sustain and cost competitive in Keyland, I have been tasked by the board with undertaking an operational review. This is imperative to ensure that we improve our cost competitiveness while also meeting the demands of our customers. Could you explain on how we can advise Oleg Scragg, Production director for the production budget for June 2022 if Management desires an ending finished goods for each product to be 15% of the budgeted sales unit. Perhaps, you can prepare the production budget to assist me in advising him. I look forward to your report. Regards; Sophia QUESTION It is currently 4th December 2022. You receive the following email from: From: Sophia Grigg. Managing Director To: Finance Officer Subject: Various Issues Good morning. I was going to get in touch with Oleg Scragg, but as he's currently out on sick leave. Emily Queda suggested I could enlist your help. Firstly, there were some issues within the proposed budget. I recommend you have a look at this as soon as possible. I have a meeting with the Senior Management Team (SMT) later on today relating to various issues and would appreciate it if you could put together some briefing notes explaining: (1) Explain on the importance of Cost-Volume - Profit analysis. (2) Estimate the break-even point in unit and sales revenue for June 2022. (3) Assuming all costs are as budgeted, if the company desires to achieve gross profit of 70% for each type of athletic shoes, how many sales unit should we propose in the budget information. (4) Based on new sales unit proposed in (3) above, analyse the new break-even point in unit and value for each type of products since there will be an increase of 5% on the raw materials as I have just received information from Georgia, Head of purchasing. (5) Describe THREE (3) major steps in the control phase of budgeting. Considering the increased pressure for TreadCushy to remain sustain and cost competitive in Keyland, I have been tasked by the board with undertaking an operational review. This is imperative to ensure that we improve our cost competitiveness while also meeting the demands of our customers. Could you explain on how we can advise Oleg Scragg, Production director for the production budget for June 2022 if Management desires an ending finished goods for each product to be 15% of the budgeted sales unit. Perhaps, you can prepare the production budget to assist me in advising him. I look forward to your report. Regards; Sophia
Expert Answer:
Answer rating: 100% (QA)
1 The importance of costvolumeprofit CVP analysis is that it helps managers understand how changes i... View the full answer
Related Book For
Accounting for Decision Making and Control
ISBN: 978-1259564550
9th edition
Authors: Jerold Zimmerman
Posted Date:
Students also viewed these finance questions
-
You receive the following email from Jean Marie: Hi again! I just received a few 1099s for a business I started in 2020. It is a Virtual Assistant business. Here is the information you will need for...
-
You have received the following email from the Chief Executive Officer of Clark Casc Logistics plc, where you are employed as manager of a loading bay, inviting you to the first in a series of...
-
This week, you have received the following email from a friend of yours, Helen Mayer. Helen is the owner of a local eco-friendly toy store, EcoGioco. There are two locations now open and each store...
-
A 15.00 g metal sphere was found to have a diameter of 1.85 cm. The volume of a sphere is V = (4/3)r. Calculate the density of the sphere and assuming that the sphere is made out of one of the...
-
During 2015, Paola Corporation reported net sales of $3,500,000 and net income of $1,500,000. Its balance sheet reported average total assets of $1,400,000. Instructions Calculate the asset turnover.
-
Write the chemical equation and the Ka expression for the ionization of each of the following acids in aqueous solution. First show the reaction with H+(aq) as a product and then with the hydronium...
-
A statistics teacher claims that, on the average, 20% of her students get a grade of A, 35% get a B, 25% get a C, 10% get a D, and 10% get an F. The grades of a random sample of 100 students were...
-
Ingersoll Rand operates as a manufacturer in four segments: Air Conditioning Systems and Services, Climate Control Technologies, Industrial Technologies, and Security Technologies. They installed an...
-
Tableau Dashboard Activity 4 (Static) Part 1 A financial manager is reviewing three potential portfolios. His goal is to find the best portfolio structure for each of his three new clients: Client...
-
The following table contains data for a hypothetical economy: Consumer Expenditures $500 million Wages $650 million Investment Expenditures $200 million Interest Payments $100 million Government...
-
A charge +q is located at 3.000 cm, a second charge -2q is located at 8.000 cm, and a third charge +q is located at 11.00 cm. The magnitude of q is 2.450 C. + +q 5.000 -29 What is the force F, on the...
-
What qualitative factors should analysts consider when evaluating a companys likely future financial performance?
-
Indicate whether each of the following statements is true or false by writing T or F in t he a nswer c olumn. A use tax is a tax to a consumer who uses goods within a state, as opposed to buying them...
-
What is a proxy fight?
-
Identify and write out the equations for four profitability ratios.
-
Indicate whether each of the following statements is true or false by writing T or F in t he a nswer c olumn. A state wishing to collect a sales tax levies the tax on the buyer of goods but usually...
-
Assignment Description: One of the crucial commitments within International Studies is to utilize alternative texts. Documentaries are particularly valuable as alternative texts for three reasons:...
-
What are bounds and what do companies do with them?
-
Warm Boots manufactures and sells a patented ski boot with 9-volt batteries designed to keep a skier's feet warm even when the outside temperature reaches -10 Celsius. Warm Boots is organized into...
-
Magic Floor produces and sells a complete line of floor care products: wax strippers, floor soaps, and floor waxes. All of these products are packaged on a new high-speed bottling fill line. Empty...
-
St. Ashton Resorts operates high-end, all-inclusive vacation destinations in 12 locations, including Maui, Hawaii; Los Cabos, Mexico; and the Great Barrier Reef, Australia. At St. Ashton properties,...
-
On July 31, 2020, Magnus's Muffins paid \(\$ 18,000\) for business insurance for the next year. Record the entries for the purchase of the insurance by recording it as an expense and then making a...
-
On November 1, 2020, Freya Albatter's orthodontic office received a \(\$ 2,500\) prepayment from a client for dental work to be performed on November 22. The appointment got postponed until January...
-
On April 1, 2020, you prepaid three months of rent for a total of \(\$ 18,000\). Give your adjusting entry to record rent expense at April 30, 2020. Include the date of the entry and an explanation....
Study smarter with the SolutionInn App