Need help Midterm 3- Part B (Ch. 79) Help Save & Exit Submit 3 Merline Manufactu

ID: 2575497 • Letter: N

Question

Need help Midterm 3- Part B (Ch. 79) Help Save & Exit Submit 3 Merline Manufacturing makes its product for $65 per unit and sells it for $143 per unit. The sales staff receives a 10% commi the sale of each unit. Its December income statement follows on 1,430,0e8 Cost of goods sold Sales comissions (iex) Advertising 143,000 226,e00 25,300 equipment 54,500 Net income s results to be repeated in January, February, and March of 2018 without any changes in strategy Management, however, has an alternative plan. it believes that unit sales v increase at a rate of 10% each month for the next three to S128 per unit and advertising expenses are increased by 20% and remain at that level for all three months. The cost of its product will remain at $65 per unit, the sales staff will continue to earn a 10% c and the remaining expenses will stay the same statements for each of the months of January and March that show the expected results from

Explanation / Answer

TOTAL

JAN

FEB

MAR

SALES (UNITS)

11000

12100

13310

SALES DOLLARS

1408000

1548800

1703680

COST OF SALES

715000

786500

865150

693000

762300

838530

LESS EXPENSES

SALES COMM

140800

154880

170368

ADV

271200

325440

390528

RENT

25300

ADM SALARIES

44500

DEP

56500

OTHER EXP

13300

NET INCOME

141400

142380

138034