Complete the following problems and cases in the textbook: Problem 15-4 Problem 16-2 Problem 16-3 Case 16-1 Case 16-3 Submit your assignment as an Excel file with one problem or case per worksheet....

15.4
    Problem 15-4
    The following questions can be raised about the performance of the Eastside Branch and its manager based on information in the report:-
    ·         What was the reason for the manager being not able to make the number of prospect call? Is this why the manager was not able to secure the number of new accounts and enhancement in the volume of deposit.
    ·         Was the amount spent for advertisement expenses could have been reduced and the amount saved could have been used for the planned growth for new accounts and volume in deposit?
    ·         Could the amount of $ 2,200 saved by slacking an employee who was not needed led to the result of not being able to make the number of calls?
    ·         Why the revenue generated less than the amount of planned revenue?
    ·         Did the manager focus more loans than securing loans?
16.2
    Problem 16-2
    (a)    Break even volume = Fixed Cost / Unit Contribution
    = $1,056,000/ ($9.60-$5.76)
    = $1,056,000 / $3.84
    = 275,000 boxes
    (b)   Cu
ent Contribution margin percentage
    = $3.84 / $9.60
    0.4
    Contribution margin percentage = (UR – UVC) / UR
    UR = UVC / (1- Contribution margin percentage)
    The Variable production costs increases by 15% that is the amount increased from $5.52 to UVC to $6.48. The selling price per box will be:-
    UR = $6.48/(1-40%)
    =$10.80
    (c)    Projected Income Statement:-
    Particulars    Amount ($)
    Revenue (390,000 * $9.60)    3,744,000
    Variable Costs (390000*$5.76)    2,246,400
    Contribution    1,497,600
    Fixed Cost    1,056,000
    Profit before Tax    441,600
    Tax (40%)    176,640
    Profit after tax    264,960
    In general pre-tax I = (UR-UVC) * -TFC. Therefore
    Let the no. of units be X
    Net Income = (Selling Price – Variable Cost)*No. of Units –Fixed Cost
    441600 = (9.60 – 6.48) X * -1056000
    =480,000 boxes.
16.3
    Problem 16-3
    (a)    It is assumed that the cost of goods sold is the only item of variable expense
    Break even volume = Fixed Costs / Unit Contribution
    = $241,361-$92,400/($8.50-$2.55*)
    =$148,960/$5.95
    =$25,035 pizzas
    *$308,000/$8.50 = 36235 pizzas
    $92,400/36,235
    = 2.55 per pizza variable costs
    (b)   Cash fixed costs = Total Fixed Costs – Depreciation
    =$148,960 – ($16,000 + $8,000)
    =$124,960
    Tax shield on depreciation $24,000 * 30% = $7,200. This will offset against the fixed costs leaving $117760 net cash fixed costs.
    Break even volume on the cash basis will be $117,760 - $5.95 =19,792 pizzas
    (c)    Cash generated by operations equals net income plus non cash expenses
    $46,648 + $24,000 = $70,648
    Remaining 56248 if Calderone withdraws $14,400 for his personal use.
    (d)   The easiest way to approach this question is to treat the target pre tax income as a fixed cost. Since the target income is $60,000 the target pre tax income is
    $60,000 / 70%
    = $85,713.
    When the above is added to fixed costs the total is $234,673.
    Required volume = $234,673 / $5.95
    =$39,441 pizzas
    (e)    As the most of the expenses are fixed, the sales have to be made in large volume so that the profit can be generated. After the
eak-even point the profit will be $5.95, a larger change in profits as the profit start at zero. While $8.50 change in sales is smaller proportion of sales as the larger sales is required before the...