P2-23
Alden company
Cost
formulas:
|
Cost
|
Cost Formula
|
|
Cost of goods sold
|
$20 per unit sold
|
|
Advertising expense
|
$170,000 per quarter
|
|
Sales commissions
|
5% of sales
|
|
Administrative salaries
|
$80,000 per quarter
|
|
Shipping expense
|
?
|
|
Depreciation expense
|
$50,000 per quarter
|
|
|
|
Units
sold and related shipping expenses:
|
Quarter
|
Units Sold
|
Shipping Expense
|
|
Year 1:
|
|
|
|
First
|
16,000
|
$160,000
|
|
Second
|
18,000
|
$175,000
|
|
Third
|
23,000
|
$217,000
|
|
Fourth
|
19,000
|
$180,000
|
|
|
|
|
|
Year 2
|
|
|
|
First
|
17,000
|
$170,000
|
|
Send
|
20,000
|
$185,000
|
|
Third
|
25,000
|
$232,000
|
|
Fourth
|
22,000
|
$208,000
|
Sales
forecase for 1st Quarter, Year 3:
Units 21,000
Price
per unit $50
SOLUTION
PREVIEW
|
|
Units
sold
|
Shipping
Expense
|
|
High activity level
|
25,000
|
$
232,000
|
|
Low activity level
|
16,000
|
160,000
|
|
Change
|
9,000
|
$
72,000
|
|
e
|
Correct!
|
Correct!
|
File
name: P2-23-Alden-company.xls
File type: XLS Price: $7
