Exercise 4-17 Wilde Home & Garden is organized into three departments. The follo

Question

Exercise 4-17 Wilde Home & Garden is organized into three departments. The following sales and cost data are available for the prior year:

Dept.A Dept.B Dept.C Total Sales $285,000 $900,000 $955,000 $2,140,000 Less variable costs 125,000 565,000 755,000 1,445,000 Contribution margin 160,000 335,000 200,000 695,000 Less fixed costs 70,000 90,000 95,000 255,000 Profit $90,000 $245,000 $105,000 $440,000 Calculate profit as a percent of sales in the prior year. (Round answer to 2 decimal places, e.g. 15.25%.)

Profit as a percent of sales %
Suppose sales in the current year increase by 15 percent. Calculate profit as a percent of sales for the new level of sales. (Round answer to 2 decimal places, e.g. 15.25%.)

Profit as a percent of new level of sales % Wilde Home & Garden is organized into three departments. The following sales and cost data are available for the prior year:

Dept.A Dept.B Dept.C Total Sales $285,000 $900,000 $955,000 $2,140,000 Less variable costs 125,000 565,000 755,000 1,445,000 Contribution margin 160,000 335,000 200,000 695,000 Less fixed costs 70,000 90,000 95,000 255,000 Profit $90,000 $245,000 $105,000 $440,000 Wilde Home & Garden is organized into three departments. The following sales and cost data are available for the prior year:

Dept.A Dept.B Dept.C Total Sales $285,000 $900,000 $955,000 $2,140,000 Less variable costs 125,000 565,000 755,000 1,445,000 Contribution margin 160,000 335,000 200,000 695,000 Less fixed costs 70,000 90,000 95,000 255,000 Profit $90,000 $245,000 $105,000 $440,000 Calculate profit as a percent of sales in the prior year. (Round answer to 2 decimal places, e.g. 15.25%.)

Profit as a percent of sales %
Calculate profit as a percent of sales in the prior year. (Round answer to 2 decimal places, e.g. 15.25%.)

Profit as a percent of sales % Suppose sales in the current year increase by 15 percent. Calculate profit as a percent of sales for the new level of sales. (Round answer to 2 decimal places, e.g. 15.25%.)

Profit as a percent of new level of sales % Suppose sales in the current year increase by 15 percent. Calculate profit as a percent of sales for the new level of sales. (Round answer to 2 decimal places, e.g. 15.25%.)

Profit as a percent of new level of sales % Exercise 4-17 Wilde Home & Garden is organized into three departments. The following sales and cost data are available for the prior year:

Dept.A Dept.B Dept.C Total Sales $285,000 $900,000 $955,000 $2,140,000 Less variable costs 125,000 565,000 755,000 1,445,000 Contribution margin 160,000 335,000 200,000 695,000 Less fixed costs 70,000 90,000 95,000 255,000 Profit $90,000 $245,000 $105,000 $440,000

Explanation / Answer

Profit as a percent of sales 20.56% Profit as a percent of new level of sales 22.11%

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