help with 16 and 17. Thank you! BMT 2100 HW Project.doc (Protected View)-Word LA
ID: 2800938 • Letter: H
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help with 16 and 17. Thank you!
BMT 2100 HW Project.doc (Protected View)-Word LAYOUT REFERENCES MAILINGS REVIEW VIEW ACROBAT 16) BMT Corporation has forecast credit sales for the first quarter of the year as: December(actual) January (estimate) February(estimate) March(estimate) $150,000 90,000 75,000 100,000 Experience has shown that 30 percent of sales receipts are collected in the month of sale, 65 percent in the following month, and 5 percent are never collected. a) Prepare a schedule of cash receipts for BMT Corporation covering the first quarter (January through March). For each of those three months, calculate the amount of cash the company expects to COLLECT from customers. 17) BMT Corporation sells a product for $250 each. The product costs $190 for the company to make, and the company has $210,000 of fixed costs. a) Compute break-even point for this product. b) BMT expects to sell 5,000 units. Compute the total sales, total expenses, and profit/loss for BMT at this level of sales. 18) Answer problem 16-8 on page 325 of the textbook.Explanation / Answer
Answer =16 CASH BUDGET December January February March Sales $ 1,50,000 $ 90,000 $ 75,000 $ 1,00,000 30% collected in the same month of Sale $ 45,000 $ 27,000 $ 22,500 $ 30,000 65 % is collected in next Months $ 97,500 $ 58,500 $ 48,750 5% never Collected $ - $ - Cash Collection against Sales $ 1,24,500 $ 81,000 $ 78,750 Answer = 17 (A) CALCULATION OF THE BREAK EVEN POINT Sales = $ 250 Less: Product Cost $ 190 Contribution = $ 60 Break Even Point = Fixed Cost / Contribution Per unit Break Even Point = $ 210,000 / $ 60 = 3500 Units Answer = 17 (B) Sales (5000 X $ 250) $ 12,50,000 Less: Variable Cost (5000 X $ 190) $ 9,50,000 Contribution $ 3,00,000 Less: Fixed Cost $ 2,10,000 Net Profit $ 90,000
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