Please ignore the marks and the 0 above. This is a Marketing Research course. Ap
ID: 2539932 • Letter: P
Question
Please ignore the marks and the 0 above. This is a Marketing Research course.
Application 1a: Marketing performance. Instructions: Calculate the best answer to Question 1, Parts a-d. 1. Given the following: Net Sales 450,000 30,000 Fixed Assets Total Liabilities Sales Commissions Inventory (Ending) Advertising Customer Deliveries Salaries Freight In Discounts/Allowances 40,000 Rent 5,000 Inventory (Beg) 2,500 Owner's Equity 50,000 Net Purchases 150,000 20,000 45,000 50,000 260,000 75,000 9,000 Current Assets # of Units Sold 15,000 (4 Pts)Prepare an Income Statement and Balance Sheet from the information above. a. b. (2 Pts) CHculate the values for Price per unit, Gross Purchases and Fixed Costs c. (2 Pts) Calcunate Breakeven Points in "Units" Sold (2 Pts) Set up the Strategic Profit Model (Show Ratios and "Numbers" in Each) d. sitesExplanation / Answer
Requirement a Income statement Per unit Amount in $ Sales units=9000 50 450000 Less : cost of goods sold Beginning Inventory 45000 Add : Net Purchases 260000 Less : Ending Inventory 40000 265000 Gross Margin 185000 Less Expenses Customer Delivery costs 2500 Salaries 50000 Advertising cost 5000 Sales commissions 30000 Rent 20000 Total expenses 107500 Net Income 77500 Balance sheet Asset Current asset 75000 Fixed asset 125000 Total asset 200000 Total Liabilities 150000 Owner's Equity 50000 Total Liabilities & shareholder's equity 200000 Requirement b Value for Price per unit =Sales/Units sold =450000/9000 50 Gross Purchases =Net Purchases+Discounts and allowances+Freight in =260000+15000+10000 285000 Fixed costs Advertising 5000 Customer deliveries 2500 Rent 20000 Salaries 50000 Total fixed costs 77500 Requirement c Break even points in Units sold Calculation of contribution per unit Sales per unit 50 Cost of goods sold 265000 Sales commissions 30000 Total variable costs 295000 No. of units sold 9000 Variable cost per unit 32.77778 Contribution per unit 17.22222 Break even point in units Total fixed cost/Contribution per unit =77500/17.222222 = 4500 Requirement d Stratgic Profit Model numbers Sales 450000 Less :Variable costs 295000 Contribution margin 155000 Less :Fixed costs 77500 Operating profit 77500 Contribution margin ratio here is =Contribution margin/Sales% =17.222222/50% 34.44