Managerial Accounting

Managerial Accounting 1B (Power Time and Haltom Business Case Study) A Powertime, Inc., produces and sells electric lawn mowers for $250 each. The variable exist of each mower centerfield $ one hundred sixty while total monthly meliorate get across are $22, d. Current monthly gross sales are $100,000. The adjudge company is considering a proposal that will increase the interchange equipment casualty by 10%, increase total fixed approachs by 10% and increase unit sales to 500 units per month. Sales units Sales interchange price: $250 100,000 four hundred Selling price: $250(0.1)= $275 137500 Variable cost: $160variable cost: $160 mulish cost: 22500Fixed cost: 22,500(0.1)= 24750 1. image the companys period break- even off sign in units and dollars? see even Units: Fixed write down/CMUnit 22500/90 = 250 CM: 250-160= 90 Dollars: Fixed expense/ Cm ratio 22500/.36= $62500 CM d imension: units 90/ $250 selling price = .36 2. What is the companys current leeway of precaution in Units, dollars and percentage? Margin of resort (DOLLARS) Budgeted break even = 100,000-62500= 37500 (Percentage) 37.500/100.000= 37.5% (Units) 37500/250= 150 3. cypher the companys margin of rubber in units presume the proposal is accepted. Margin of Safety (Dollars) 137500-58929= 78571 (Units) 78571/275= 286 4.

image the increase or decrease in profit assume the proposal is accepted, show the contribution Income Statement for current and proposed. pull ahead Proposed Sales 100,000 137500 Variabl! e expense 64000 80000 CM 36000 57500 Fixed cost 22500 244750 Net income 13500 32750difference: 19250 4a. What is the operating leverage for the current and proposed? run supplement CM/ Net Operating Income Current: 36000/13500~2.7% Proposed: 57500/32750~1.8% 4b. on that point is a change in operating leverage from...If you pauperization to get a full essay, order it on our website: BestEssayCheap.com

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