Meyerson's Bakery Projected Income Statement for Pie Line Sales $...

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Meyerson's Bakery Projected Income Statement for Pie Line Sales $25.000 Variable Costs 7.500 Fixed Costs 20.000 Earnings Before Interest and Taxes (2.500) Interest Expense 3.000 Earnings Before Taxes (5.500) Taxes (1.925) Net Income (3.575) Additional Data Estimated Pie Sales in Units 2.500 Price per Pie $ 10,00 Variable Cost per Pie $ 3,00 Tax Rate 35% Calculate the following Operating Break-even Points Units a Dollars b Target Level of EBIT $15.000,00 Unit Sales Needed to Reach Target EBIT c Price per Pie to Break Even on Net Income d Calculate this using goal seek Assume you have 2500 units sold profit = price x qty - cost* qty-fc Cymer, Inc. Annual Income Statements For the Fiscal Years 2005 to 2007 dec.07 dec.06 dec.05 Total Revenue 521.696 543.855 383.648 Cost of Revenue 260.280 281.243 227.290 Gross Profit 261.416 262.612 156.358 Research Development 81.842 73.974 64.025 Selling General and Administrative 65.112 69.507 51.657 Net Operating Income 114.462 119.131 40.676 Other Income/Expenses Net 22.099 25.526 12.048 Earnings Before Interest And Taxes 136.561 144.657 52.724 Interest Expense 6.709 5.965 6.936 Income Before Tax 129.852 138.692 45.788 Income Tax Expense 44.413 46.137 262 Minority Interest 2.923 3.093 1.026 Net Income 88.362 95.648 46.552 Assumed S,G&A Expense Breakdown Variable 70% Fixed 30% Calculate and graph the DOL, DFL and DCL for each of the three years. Leverage Measures Degree of Operating Leverage Degree of Financial Leverage Degree of Combined Leverage Best Products Vintage Domestic EU new Industry Average Average Selling Price $35.000 $27.000 $52.000 $30.000 Unit Sales 1.500 1.850 850 1.250 Interest Expense 750.000 1.000.000 3.000.000 1.500.000 Variable Costs (% of Sales) 60% 45% 40% 48% Fixed Costs 10.000.000 7.000.000 20.000.000 11.000.000 Preferred Dividends 1.000.000 - 600.000 300.000 Common Shares 5.000.000 8.000.000 3.000.000 7.000.000 Tax Rate 35% 35% 35% 35% Best Products Vintage Domestic EU new Industry Average Sales Variable Costs Fixed Costs Earnings Before Interest and Taxes Interest Expense Earnings Before Taxes Taxes Net Income Preferred Dividends Net Income Available to Common Earnings per Common Share Break-even Point (Units) Break-even Point (Dollars) Degree of Operating Leverage Degree of Financial Leverage Degree of Combined Leverage Calculate the proforma income statement based on the assumptions above. Then calculate the breakeven in units and dollars, and the DOL, DFL and DCL for each company and the industry Break-even Analysis Case a) 1 2 3 4 Total Expected Sales (units) 2.243 2.804 3.505 4.381 12.932 25% growth rate in sales Unite Sales Price $110 $110 $110 $110 Total Sales Revenue In Year 1, Jay Company expects to sell 2,243 units at $110 per unit. Sales are expected to increase 25% each year for years 2-4. The unit sales price will remain the same. Labor is 23% of sales, Overhead 10%, Materials 5%, and Variable Sales and Admin, 4%. Fixed Costs, are Factory Overhead (2%) and Sales and Admin (4%). Interest expense of $425 is evenly budgeted over the period. The company tax rate is 20%. a) Create the Sales Budget for the 4-year period. b) Calculate the variable cost per unit based on the cost given. c) Create a budgeted income statement for the 4-year period, using all the information provided and calculated. d) Calculate the CM ratio, Unit CM, Breakeven in units, Breakeven in dollars for the total 4-year period. e) If sales remain at the budgeted 4-year level, but fixed costs increase to $367,800, and the company wants to achieve target net income of $ $700,000, recalculate the CM ratio, Unit CM, Breakeven in units, Breakeven in dollars, and Target Breakeven in Units. f) Create a breakeven chart for Jay Company based on unit increments of 250 and the revised fixed costs of $367,800. (Hint: You want to graph sales, fixed costs and total costs (total variable and fixed) on one scatter plot.)

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1.
Calculate the following
Operating Break-even Points
Units 2.857
Dollars $28.571,43

Target Level of EBIT $15.000,00
Unit Sales Needed to Reach Target EBIT 5.000

Price per Pie to Break Even on Net Income $12,20
Assume you have 2500 units sold
Profit on 2500 units 0,00...

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