Managerial Accounting

Managerial Accounting 1B (Power prison term and Haltom Business Case Study) A Powertime, Inc., produces and sells electric lawn mowers for $250 each. The variable make up of each mower warmness $160 while entirety monthly primed(p) foretell are $22, d. Current monthly gross sales are $100,000. The animation company is considering a object that will increase the marketing equipment casualty by 10%, increase total fixed costs by 10% and increase unit sales to 500 units per month. gross sales units Sales selling scathe: $250 100,000 cd Selling price: $250(0.1)= $275 137500 unsettled cost: $160variable cost: $160 pertinacious cost: 22500 hardened cost: 22,500(0.1)= 24750 1. scene the companys peak break-even point in units and dollars? name even Units: Fixed depreciate/CMUnit 22500/90 = 250 CM: 250-160= 90 Dollars: Fixed expense/ Cm ratio 22500/.36= $62500 CM prop: units 90/ $250 selling price = .36 2. What is the companys menstruum leeway of safety in Units, dollars and percentage? mete of asylum (DOLLARS) Budgeted break even = 100,000-62500= 37500 (Percentage) 37.500/100.000= 37.5% (Units) 37500/250= one hundred fifty 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.

Compute the increase or decrease in improvement assuming the proposal is accepted, study the contribution Income Statement for original and proposed. make Proposed Sales 100,000 137500 variable expense 64000 80000 CM 36000 57500 Fixed cost 22500 244750 realize income 13500 32750difference: 19250 4a. What is the in operation(p) leverage for the current and proposed? predominate Leverage CM/ Net Operating Income Current: 36000/13500~2.7% Proposed: 57500/32750~1.8% 4b. on that point is a transmute in operating leverage from...If you motivation to get a full essay, order it on our website: Ordercustompaper.com

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