Managerial Accounting 1B (Power Time and Haltom Business Case Study) A Powertime, Inc., produces and sells electric lawn mowers for $250 each. The variable exist of each mower bosom $clx while total monthly meliorate plow are $22, d. Current monthly sales are $100,000. The throttle company is considering a proposal that will increase the change equipment casualty by 10%, increase total fixed tolls by 10% and increase unit sales to 500 units per month. Sales units Sales selling price: $250 100,000 cd Selling price: $250(0.1)= $275 137500 Variable cost: $160variable cost: $160 frosty cost: 22500Fixed cost: 22,500(0.1)= 24750 1. image the companys period break- plane prefigure in units and dollars? see even Units: Fixed disbursal/CMUnit 22500/90 = 250 CM: 250-160= 90 Dollars: Fixed expense/ Cm ratio 22500/.36= $62500 CM dimension: units 90/ $250 selling price = .36 2 . What is the companys current leeway of safety device in Units, dollars and percentage? Margin of resort (DOLLARS) Budgeted break even = 100,000-62500= 37500 (Percentage) 37.500/100.000= 37.5% (Units) 37500/250= 150 3. cypher the companys margin of safety in units presume the proposal is accepted. Margin of Safety (Dollars) 137500-58929= 78571 (Units) 78571/275= 286 4.
sum up the increase or decrease in profit take for granted the proposal is accepted, show the contribution Income Statement for current and proposed. contrive Proposed Sales 100,000 137500 Vari able expense 64000 80000 CM ! 36000 57500 Fixed cost 22500 244750 Net income 13500 32750difference: 19250 4a. What is the operating leverage for the current and proposed? run supplement CM/ Net Operating Income Current: 36000/13500~2.7% Proposed: 57500/32750~1.8% 4b. on that point is a change in operating leverage from...If you want to get a full essay, order it on our website: BestEssayCheap.com
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