COST-VOLUME ANALYSIS During its first year of operations, the S-Ray Corporation produced the following income statement results: Income…

COST-VOLUME ANALYSIS

During its first year of operations, the S-Ray Corporation produced the following income statement results:

Income Statement2013Net Sales400,000.00less: Cost of Goods Sold240,000.00Gross Profit160,000.00less: General & Administrative 60,000.00less: Marketing expenses60,000.00less: Depreciation20,000.00EBIT20,000.00less: Interest expenses10,000.00Earnings before taxes10,000.00less: Income taxes (30%)3,000.00Net earnings (loss)              7,000.00

Costs of goods sold are expected to vary with sales and be a constant percentage of sales. The general and administrative employees have been hired and are expected to remain a fixed cost. Marketing expenses are also expected to remain fixed since the current sales staff members are expected to remain on fixed salaries and no new hires are planned. The effective tax rate is expected to be 30 percent for a profitable firm.

Estimate the survival or EBDAT breakeven amount in terms of survival revenues necessary for the S-Ray Corporation to breakeven next year, or the Survival revenues (SR) to achieve EBDAT = 0.

Use the attached spreadsheet for analysis, _efu_homework2_excel.xlsx

ItemResultsFormulaRevenue (R )??<– RevenueVariable Cost (VC)??<– cost of goods soldCFC??<– Admin + Marketing + InterestVCRR??<– VC / RSurvival??<– CFC / (1 – VCRR)

Show more







Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10