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Remember to complete all parts of the problems and report the results of your analysis. Do not forget to show the necessary steps and explain how your attained that outcome.
Everything should be done in EXCEL including any conclusions in 50 words or less.

Problem 12-4

Leverage Analysis:
You have developed the following income statement for your corporation. It represents the most recent year’s operations, which ended yesterday.

Sales $45,750,000
Variable costs 22,800,000
Revenue before Fixed costs $22,950,000
Fixed Costs 9,200,000
EBIT $13,750,000
Interest Expense 1,350,000
Earnings Before Taxes $12,400,000
Taxes @ 50% 6,200,000
Net Income $6,200,000
Your supervisor in the controller’s office has just handed you a memorandum asking for written responses to the following questions:
a. What is the firm’s break even point in sales dollars?
b. If sales should increase by 25% by what percent would earnings before taxes (and net income) increase?
________________________________________
________________________________________






Problem 12-8
Operating Leverage
Rocky Mount Metals Company manufactures an assortment of wood burning stoves. The Average selling price for the various units is $500.00 The associated variable cost is $350 per unit. Fixed costs for the firm average $180,000 annually.
A. What is the break –even point in units for the company
B. What is the dollar sales volume the firm must achieve to reach the break even point?
C. What is the degree of operation leverage for a production and sales level of 5000 units for the firm? (calculate to three decimal places.)
D. What will be the projected effect on earnings before interest and taxes if the firm’s sales level should increase by 20 percent from the volume noted in part
Submitted: 8 years ago.Category: Homework
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6/22/2010
Tutor: Manal Elkhoshkhany, Tutor replied 8 years ago
Manal Elkhoshkhany
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Satisfied Customers: 9,999
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Hello again

 

when is the deadline for this one please?

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Customer reply replied 8 years ago

you already answered it. However my instructor wanted it in excel only. I did partial based upon on our last converstation and it was rejected.

 

Can you provide it in Excel only, showing all work in each cell?

 

I didn't want to bother you even though you are the best!

Tutor: Manal Elkhoshkhany, Tutor replied 8 years ago
oh no, I will do it but when is the deadline?
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Tutor: Manal Elkhoshkhany, Tutor replied 8 years ago

Hello

 

I was about to post the solution to the question you have addressed to me and was shocked that you have accepted the solution that another expert has provided. I am sorry, but this is really not fair. I worked on the questions as we had an agreement, but you went ahead and accepted the other solution. For future posts, if you decide that you want other experts to help, then please do not address your posts to me because when I commit, I turn other people down to complete your assignments

 

Thank you

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Customer reply replied 8 years ago

I will compensate you for your work. I have another assignment and will make it up to you, if you will accept it.

 

 

Tutor: Manal Elkhoshkhany, Tutor replied 8 years ago
It is not a matter of money. I would not accept that, I am just upset because I could have been helping other students at the same time, but I had to turn them down. This is what I am upset for
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Customer reply replied 8 years ago

I understand. I apologize. I wasn't convinced you were in. My mistake. I am sorry.

 

I will still make it up. You are valuable, and it wasn't fair to you and all the others. I will also say, that the websight immediatly terminates the option to select a specific tutor and I needed to put it in the subject area. It was confusing.

 

If you are done with me, I will understand. I just need to know.

 

Thanks,

Customer reply replied 8 years ago
By the way, I never did receive anything from anyone. I got your word workup and that's it. So, nobody responded.
Tutor: Manal Elkhoshkhany, Tutor replied 8 years ago

I am very confused. You are saying "I never did receive anything from anyone", which assignment are you talking about? I did not say I was not going to work with you, all I said was that I was in shock when I worked the assignment to find out that you have accepted other expert's answer. I am talking about the following post:

 

http://www.justanswer.com/questions/3ndb8-requesting-a-specific-expert-the-business-tutorbreak-even

 

I just checked the other expert's solution and it is not correct and is incomplete as well so now I will go and post my correct and complete solution on the following link:

 

http://www.justanswer.com/questions/3ndb8-requesting-a-specific-expert-the-business-tutorbreak-even

 

You can request a refund from the other expert and then pay me. I think in his rush to trick you into accepting his solution he did not pay attention to all the requirements

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