Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relles completely on Independent sales agents to market its products. These agents are paid a sales commission of 15% for all Items sold. Barbara Cheney, Pittman's controller, has just prepared the company's budgeted Income statement for next year as follows: Pittman Company Budgeted Income statement For the Year Ended December 31 Sales Manufacturing expenses: variable Fixed overhead Gross margin selling and administrative expenses: Commissions to agents Fixed marketing expenses Fixed administrative expenses Net operating income Fixed interest expenses Income before income taxes Income taxes (30) $ 8,325,000 2,590,000 2,775,000 129,500* 1,900,eee $ 18,500,000 10,915,000 7,585,000 4,804,500 2,780,500 647,500 2,133,000 639.900
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a and b are the correct answers
I just need the answer for question c
The company employs its own sales force
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- Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiners master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employers share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the companys union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 5,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 35 percent of the following month's projected sales in inventory. Information on the first four months of the coming year is as follows: Required: 1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year. Be sure to show supporting calculations. a. Production budget in units b. Direct labor budget in hours c. Direct materials cost budget d. Sales budget 2. Calculate the total budgeted contribution margin for Greiner Company by month and in total for the first quarter of the coming year. Be sure to show supporting calculations. (CMA adapted)Carmichael Corporation is in the process of preparing next years budget. The pro forma income statement for the current year is as follows: Required: 1. What is the break-even sales revenue (rounded to the nearest dollar) for Carmichael Corporation for the current year? 2. For the coming year, the management of Carmichael Corporation anticipates an 8 percent increase in variable costs and a 60,000 increase in fixed expenses. What is the break-even point in dollars for next year? (CMA adapted)Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to market its products. These agents are paid a sales commission of 19% for all items sold.Barbara Cheney, Pittman�s controller, has just prepared the company�s budgeted income statement for next year. The statement follows:Pittman CompanyBudgeted Income StatementFor the Year Ended December 31Sales $ 19,900,000Manufacturing expenses:Variable $ 7,850,000Fixed overhead 2,860,000 10,710,000Gross margin 9,190,000Selling and administrative expenses:Commissions to agents 3,781,000Fixed marketing expenses 250,000*Fixed administrative expenses 2,450,000 6,481,000Net operating income $ 2,709,000Fixed interest expenses 670,000Income before income taxes 2,039,000Income taxes (20%) 407,800Net income 1,631,200*Primarily depreciation on storage facilities.As Barbara handed the statement to…
- Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to market its products. These agents are paid a sales commission of 15% for all items sold. Barbara Cheney, Pittman’s controller, has just prepared the company’s budgeted income statement for next year as follows: Pittman CompanyBudgeted Income StatementFor the Year Ended December 31 Sales $ 18,500,000 Manufacturing expenses: Variable $ 8,325,000 Fixed overhead 2,590,000 10,915,000 Gross margin 7,585,000 Selling and administrative expenses: Commissions to agents 2,775,000 Fixed marketing expenses 129,500* Fixed administrative expenses 1,900,000 4,804,500 Net operating income 2,780,500 Fixed interest expenses 647,500 Income before income taxes 2,133,000 Income taxes (30%) 639,900 Net income $ 1,493,100 *Primarily depreciation on storage…Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to market its products. These agents are paid a sales commission of 15% for all items sold. Barbara Cheney, Pittman’s controller, has just prepared the company’s budgeted income statement for next year as follows: Pittman CompanyBudgeted Income StatementFor the Year Ended December 31 Sales $ 18,500,000 Manufacturing expenses: Variable $ 8,325,000 Fixed overhead 2,590,000 10,915,000 Gross margin 7,585,000 Selling and administrative expenses: Commissions to agents 2,775,000 Fixed marketing expenses 129,500* Fixed administrative expenses 1,900,000 4,804,500 Net operating income 2,780,500 Fixed interest expenses 647,500 Income before income taxes 2,133,000 Income taxes (30%) 639,900 Net income $ 1,493,100 *Primarily depreciation on storage…Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to market its products. These agents are paid a sales commission of 15% for all items sold. Barbara Cheney, Pittman’s controller, has just prepared the company’s budgeted income statement for next year as follows: Pittman CompanyBudgeted Income StatementFor the Year Ended December 31 Sales $ 18,500,000 Manufacturing expenses: Variable $ 8,325,000 Fixed overhead 2,590,000 10,915,000 Gross margin 7,585,000 Selling and administrative expenses: Commissions to agents 2,775,000 Fixed marketing expenses 129,500* Fixed administrative expenses 1,900,000 4,804,500 Net operating income 2,780,500 Fixed interest expenses 647,500 Income before income taxes 2,133,000 Income taxes (30%) 639,900 Net income $ 1,493,100 *Primarily depreciation on storage…
- Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to market its products. These agents are paid a sales commission of 15% for all items sold. Barbara Cheney, Pittman’s controller, has just prepared the company’s budgeted income statement for next year as follows: Pittman CompanyBudgeted Income StatementFor the Year Ended December 31 Sales $ 18,500,000 Manufacturing expenses: Variable $ 8,325,000 Fixed overhead 2,590,000 10,915,000 Gross margin 7,585,000 Selling and administrative expenses: Commissions to agents 2,775,000 Fixed marketing expenses 129,500* Fixed administrative expenses 1,900,000 4,804,500 Net operating income 2,780,500 Fixed interest expenses 647,500 Income before income taxes 2,133,000 Income taxes (30%) 639,900 Net income $ 1,493,100 *Primarily depreciation on storage…ittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to market its products. These agents are paid a sales commission of 15% for all items sold. Barbara Cheney, Pittman’s controller, has just prepared the company’s budgeted income statement for next year as follows: Pittman CompanyBudgeted Income StatementFor the Year Ended December 31 Sales $ 20,000,000 Manufacturing expenses: Variable $ 9,000,000 Fixed overhead 2,800,000 11,800,000 Gross margin 8,200,000 Selling and administrative expenses: Commissions to agents 3,000,000 Fixed marketing expenses 140,000 * Fixed administrative expenses 1,960,000 5,100,000 Net operating income 3,100,000 Fixed interest expenses 700,000 Income before income taxes 2,400,000…Pittman Company Is a small but growlng manufacturer of telecommunications equipment. The company has no sales force of Its own; rather, It relles completely on Independent sales agents to market its products. These agents are pald a sales commission of 15% for all Items sold. Barbara Cheney, Pittman's controller, has Just prepared the company's budgeted Income statement for next year as follows: Pittman Company Budgeted Income statement For the Year Ended December 31 Sales $ 18,580,000 Manufacturing expenses: Variable $ 8,325,000 2,590,e00 Fixed overhead 10,915,000 7,585,000 Gross margin Selling and administrative expenses: Commissions to agents Fixed marketing expenses Fixed administrative expenses 2,775,e00 129, 500* 1,900,e00 4,804,500 Net operating income Fixed interest expenses 2,780,500 647,500 2,133,000 639,900 Income before income taxes Income taxes (30%) Net income $ 1,493,100 *Primarly depreclation on storage facılitles. As Barbara handed the statement to Karl Vecci,…
- Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to market its products. These agents are paid a sales commission of 15% for all items sold. Barbara Cheney, Pittman’s controller, has just prepared the company’s budgeted income statement for next year as follows: Pittman Company Budgeted Income Statement For the Year Ended December 31 Sales $ 21,500,000 Manufacturing expenses: Variable $ 9,675,000 Fixed overhead 3,010,000 12,685,000 Gross margin 8,815,000 Selling and administrative expenses: Commissions to agents 3,225,000 Fixed marketing expenses 150,500*Footnote asterisk Fixed administrative expenses 2,020,000 5,395,500 Net operating income 3,419,500 Fixed interest expenses 752,500 Income before income taxes 2,667,000 Income taxes (30%) 800,100 Net income $ 1,866,900 *Footnote…Comtech Corporations is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to market its products. These agents are paid a sales commission of 15% for all items sold. Belinda Carter, Comtech’s controller, has just prepared the company’s budgeted income statement for next year as follows: Comtech Corporations Budgeted Income Statement For the Year Ended December 31 Sales $16,000,000 Manufacturing expenses: Variable $7,200,000 Fixed overhead 2,340,000 9,540,000 Gross margin 6,460,000 Selling and administrative expenses: Commissions to agents 2,400,000 Fixed marketing expenses 120,000* Fixed administrative expenses 1,800,000 4,320,000 Net operating income 2,140,000 Fixed interest expenses 540,000 Income before income taxes 1,600,000 Income taxes (30%) 480,000 Net income $ 1,120,000 *Primarily depreciation on storage facilities. As Belinda handed the statement to Karl Vecci,…Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies on independent sales agents to market its products. These agents are paid a sales commission of 15% for all items sold. Barbara Cheney, Pittman’s controller, just prepared the company’s budgeted income statement for next year as follows: Pittman Company Budgeted Income Statement For the Year Ended December 31 Sales $ 18,000,000 Manufacturing expenses: Variable $ 8,100,000 Fixed overhead 2,520,000 10,620,000 Gross margin 7,380,000 Selling and administrative expenses: Commissions to agents 2,700,000 Fixed marketing expenses 126,000* Fixed administrative expenses 1,880,000 4,706,000 Net operating income 2,674,000 Fixed interest expenses 630,000 Income before income taxes 2,044,000 Income taxes (30%) 613,200 Net income $ 1,430,800 *Primarily depreciation on storage facilities. As…