Solved: Atlantic Fish Company is a wholesale distributor of

cod The
Atlantic Fish Company is a wholesale distributor of cod The

Atlantic Fish Company is a wholesale distributor of cod. The company services restaurants in
the Boston area. Small but steady growth in sales has been achieved by Atlantic Fish Company
over the past few years, while cod prices have been increasing. The company is formulating its
plans for 2010 and has gathered the following information:
Average selling price per pound ................. $9.00
Costs
Cost of cod per pound .................. $5.60
Shipping expense per pound ............. .... 0.40
Selling and administrative expense (rent and salaries) ..... $650,000
Sales commissions ...................... 10% of sales
Expected annual sales volume for 2010: 400,000 pounds of cod
The company’s estimated tax rate is 40 percent.
a. What is the expected net income for the coming year? Prepare a contribution income
statement.
b. Compute the contribution margin per unit and the contribution margin ratio.
c. What is the break-even point in pounds sold and revenues?
d. Compute the degree of operating leverage and margin of safety expected for the coming
year.
e. Refer to the original data. Using the degree of operating leverage you computed in (d),
compute the expected profit if sales are 20% above the expected level.
f. Refer to the original data. How many pounds of cod must be sold to earn an after-tax net
income of $900,000?

Atlantic Fish Company is a wholesale distributor of cod The

ANSWER
https://solvedquest.com/atlantic-fish-company-is-a-wholesale-distributor-of-cod-the/

Reach out to freelance2040@yahoo.com for enquiry.

Powered by TCPDF (www.tcpdf.org)