(questions 7-8 20 Points Each- Show work to get partial credit) 7) Bronx, Inc. h

Question

(questions 7-8 20 Points Each- Show work to get partial credit) 7) Bronx, Inc. has prepared the operating budget for the first arch. Variable sales of $75,000 in January, $85,000 in February, and $95,000 in follows: (20 Points) quarter ot the year. The company forecast March. Variable and foxed expeers are Variable Expenses: Power cost (30% of sales) Miscellaneous expenses: (20% of sales) Fixed Expenses: Salaries expense: $10,000 per month Rent expense: $3,000 per month Depreciation expense: $1,000 per month Power cost/fixed portion: $1000 per month Miscellaneous expenses/fixed portion: $1,200 per month Using the information above, calculate the amount of selling and administrative expens a3

Explanation / Answer

Answer: 7)-

4)- She should sell 2 scarves (option c) each day in order to achieve break even point.

Explanation:-

Selling price per scarf = $40

Variable cost per scarf = $15

Contribution per scarf = Selling price per scarf- Variable cost per scarf

                                      =$40-$15 = $25

Fixed cost (Rent) per day = $50

Break even point in units (scarf) = Fixed cost per day/ Contribution per scarf

                                                     =$50/$25 = 2 scarves

Bronx Inc. Calculation of Selling & Administrative expenses Particluars January February March Total $ $ $ Power cost 75000*30%=22500 85000*30%=25500 95000*30%=28500 76500 Miscellenous expenses 75000*20%=15000 85000*20%=17000 95000*20%=19000 51000 Salaries expenses 10000 10000 10000 30000 Rent expenses 3000 3000 3000 9000 Depreciation 1000 1000 1000 3000 Power cost (Fixed) 1000 1000 1000 3000 Miscellenous expenses (Fixed) 1200 1200 1200 3600 Total selling & adminitrative expenses 53700 58700 63700 176100

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