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Advance Cash strategy & Revenue Planning Methods

 Advance Cash strategy  Earnings Planning Approaches Essay

QUESTION AND ANSWER PERTAINING TO ASSIGNMENT AEU

1 . Effective Company accrued the following info for a delivery truck.

Kilometers DrivenTotal CostMiles drivenTotal Price

January 10, 000$ 12-15, 000March9, 000$ 12, 500

February8, 000$14, 500April7, 500$13, 000

Needed:

a) Determine the equation to anticipate total costs for delivery truck. b) What ought to total costs be if 12, 187 miles had been driven?

Expense =15000 _ 13000= 2000

Activity10, 00070002500

в†ђ In cost = 2000= 0. 8= VC Per device

2500

( In Activity = 15000_ 10000 Г— zero. 8 = 8000=7000

13000 7500 Г— 0. 8 = 6000=7000

b) 12187 Г— zero. 8 sama dengan 9749. six

= 7000

16749. 6

2 . What the law states Mower Shop is a store that offers lawn mowers. The cash flow statement for the month of June showed a gross margin of $ 60, 000 and functioning income of $ twenty, 000. Advertising and management expenses had been 50% set. Two hundred mowers were sold at an average value of dollar 750 per unit. Almost all mowers are ordered from Tauro and John Deere.

Required:

a) Make an income affirmation for the month making use of the contribution approach. b) What is the contribution margin every unit?

Low margin – 60, 000

Oprt salary _ 20, 000

S/ADM exp sama dengan 50%

Offering price= $ 750 every unit.

a) Unit distributed per device total

200

Sales 750 Г— 2 hundred = one hundred and fifty, 000

Varying expenses

Cost of goods sold 90000

Offering expenses/ together admin twenty, 000

Fixed cost

Expense S/admin 20000

Total cost = 40, 000 admin cost with variable bills.

b) Y= a + b (Г—)

Contribution perimeter = selling price- bills per unit = 750-650

= 750-650

= 100per unit 90000

20000...

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