sakti
Jul 8, 2009, 07:46 PM
EY co. is selling furniture, profit and loss during 1991 is shown :
sales 2000 x $4000 $ 8,000,000
less : variable cost
cost per unit 2,000 x $2,500 $(5,000,000)
commission fee 2,000 x $250 $ ( 500,000)
______________
contribution margin $ 2,500,000
Less : fixed cost
Rental fee $ 720,000
wages $200,000
advertising $100,000
other expenses $ 50,000 $( 1,070,000)
_____________
$ 1,430,000
question :
a. during 1991, owner plans to mark up sale for each furniture for 25%, commission fee is omitted and wages is increased by $ 2,000,000 how does it affect Trading and Profit&Loss account?
b. If during 1991, owner plans to produce Net Profit of $ 2,000,000 and fixed cost is remaining the same, how many of furniture should be sold out?
please help out this hw. Thankssssss alottt
sales 2000 x $4000 $ 8,000,000
less : variable cost
cost per unit 2,000 x $2,500 $(5,000,000)
commission fee 2,000 x $250 $ ( 500,000)
______________
contribution margin $ 2,500,000
Less : fixed cost
Rental fee $ 720,000
wages $200,000
advertising $100,000
other expenses $ 50,000 $( 1,070,000)
_____________
$ 1,430,000
question :
a. during 1991, owner plans to mark up sale for each furniture for 25%, commission fee is omitted and wages is increased by $ 2,000,000 how does it affect Trading and Profit&Loss account?
b. If during 1991, owner plans to produce Net Profit of $ 2,000,000 and fixed cost is remaining the same, how many of furniture should be sold out?
please help out this hw. Thankssssss alottt