Cost Category Payment Basis Cost ($)
Rent Monthly 2000.00
Salaries Monthly 5000.00
Employee benefits Annually 7000.00
Insurance Quarterly 1500.00
TABLE 5-1 Cost Data for Carl’s Toy Trucks
TABLE 5-2 Abreviated Income Statement of VMware
all figures in $thousands except Earnings Per Share
31-Dec-07 31-Dec-06
Total revenue 1,325,811 703,904
Operating Expenses 1,090,470 583,265
Operating Income 235,341 120,639
Other Income and (Expenses)
Investment Income 22,942 2,497
Interest Expense (17,757) 293
Assets
Current assets
Checking account 2,000$
Equipment 50,000
Less: Accumulated depreciation 30,000 20,000$
Total fixed assets 220,000$
Total assets 267,000$
Liabilities and owner’s equity
Total liabilities and owner’s equity 267,000$
TABLE 5-3 Balance Sheet, The Tom Jones Company
The Tom Jones Company
Balance Sheet
As of December 31, 2013
500
600
700
Figure 5-1 Break-Even Chart for Carl’s Toy Trucks
Total Revenue
Profit
Area
40000
50000
60000
Wanda’s Health Food Store
TR
Rent 3,500
Utilities 1,000
Insurance 500
Payroll 4,250
COGS 65%
8. Wanda wants to open a Health Food Store. She will pay rent of
$3,500 per month, utilities of $1,000, insurance of $500 per month, and
payroll of $4,250. She estimates that her cost of goods will be
approximately 65 percent of sales. Wanda would like to make $4,000 a
month for herself
9
Measure
Price 18 each 18 each
Raw Materials
4 each 4 each
Labor 8hour 4 each
Salaries 2500 weekly 10,833.33$ Per Month
a. How many widgets must be sold each month in order to break even?
b. How many dollars in sales does this represent?
Dollar Sales = 27,420.00$
c. What is the contribution margin for each widget sold?
Contribution margin = Price – Unit Variable cost
CM= 10.00$
d. If the goal is to make $100,000 profit per month, how many widgets must be sold?
Units for $100,000 profit= 11,523.33
Woody’s Widget Shop has the following information: The average widget has a sales
price of $18; raw materials for the widget are $4; it takes 30 minutes to assemble one
widget; and production labor is paid $8 per hour. Operating expenses are as follows:
salaries, $2,500 per week; insurance, $1,200 per quarter; rent, $3,000 per month; and
utilities, $1,000 per month.
TABLE 5-4 Abreviated Income Statement, The Van Accessible Corp
all figures in $thousands except Earnings Per Share
31-Dec-13 31-Dec-12
Total revenue 1,789,654 703,904
Cost of Revenue 478,963 275,963
Gross Profit 1,310,691 427,941
TR
20,000
25,000
Custom Cabinet Break- Even
FC 5,000.00
Price 80.00
VC 38.50
Price 10
Variable Cost 6
Fixed Costs 100
UNITS Revenue FC TC VC
60 600 100 460 360
55 550 100 430 330
50 500 100 400 300
45 450 100 370 270
500
600
700