All else constant, what would Chester’s SG&A/Sales ratio be if the company had spent an additional $1,500,000 for Cozy’s
Posted: Sun Apr 17, 2022 7:09 pm
All else constant, what would Chester’s SG&A/Sales ratio be
if the company had spent an additional $1,500,000 for Cozy’s
promotional budget and $750,000 for Cozy’s sales budget?
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11.3%
9.9%
8.4%
Andrews Baldwin Chester Digby ROS 5% 17.6% 6.6% 5.1% Asset Turnover 1.38 1.4 0.8 0.8 ROA 6.9% 24.6% 5.2% 4% Leverage (Assets/Equity) 1.4 1.7 2.4 2.2 ROE 9.9% 41.5% 12.4% 8.9% Emergency Loan $0 $0 $0 $0 Sales $169,532,859 $254,051,493 $154,989,515 $189,227,330 EBIT $16,273,161 $77,524,624 $29,978,981 $30,860,058 Profits $8,441,045 $44,798,115 $10,218,541 $9,602,705 Cumulative Profit $27,461,521 $101,699,931 $10,078,188 $12,561,166 SG&A / Sales 9% 5.6% 9.9% 11.4% Contrib. Margin % 25.8% 42.7% 42.6% 39.8%
2025 Income Statement Product Name City Cozy Creak Crimp Na Na Na Na Total Common Size Sales $28,126 $28,458 $47,902 $50,504 $0 $0 $0 $0 $154,990 100% Variable Costs: Direct Labor $2,823 $2,770 $9,777 $9,098 $0 $0 $0 $0 $24,468 15.8% Direct Material $12,437 $12,857 $18,714 $19,397 $0 $0 $0 $0 $63,406 40.9% Inventory Carry $159 $144 $366 $410 $0 $0 $0 $0 $1,079 0.7% Total Variable $15,418 $15,772 $28,858 $28,904 $0 $0 $0 $0 $88,953 57.4% Contribution Margin $12,708 $12,686 $19,044 $21,599 $0 $0 $0 $0 $66,037 42.6% Period Costs: Depreciation $4,753 $5,213 $2,787 $3,293 $0 $0 $0 $0 $16,047 10.4% R&D $446 $446 $966 $966 $0 $0 $0 $0 $2,824 1.8% Promotions $1,300 $1,300 $1,300 $1,300 so $0 $0 $0 $0 $5,200 3.4% Sales $1,600 $1,600 $1,400 $1,400 $0 $0 $0 $0 $6.000 3.9% Admin $237 $240 $404 $426 $0 $0 $0 $0 $1,307 0.8% Total Period $8,336 $8,799 $6,857 $7,385 $0 $0 $0 $0 $31,377 20.2% Net Margin $4,371 $3,887 $12,187 $14,214 $0 $0 $0 $0 $34,660 22.4% Other $4,681 3% EBIT $29,979 19.3% Short Term Interest $3,322 2.1% Long Term Interest $10,616 6.8% Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the Taxes $5,615 3.6% Profit Sharing $209 0.1% Net Profit $10,219 6.6%
if the company had spent an additional $1,500,000 for Cozy’s
promotional budget and $750,000 for Cozy’s sales budget?
Select : 1
Save Answer
11.3%
9.9%
8.4%
- All Else Constant What Would Chester S Sg A Sales Ratio Be If The Company Had Spent An Additional 1 500 000 For Cozy S 1 (80.59 KiB) Viewed 48 times
2025 Income Statement Product Name City Cozy Creak Crimp Na Na Na Na Total Common Size Sales $28,126 $28,458 $47,902 $50,504 $0 $0 $0 $0 $154,990 100% Variable Costs: Direct Labor $2,823 $2,770 $9,777 $9,098 $0 $0 $0 $0 $24,468 15.8% Direct Material $12,437 $12,857 $18,714 $19,397 $0 $0 $0 $0 $63,406 40.9% Inventory Carry $159 $144 $366 $410 $0 $0 $0 $0 $1,079 0.7% Total Variable $15,418 $15,772 $28,858 $28,904 $0 $0 $0 $0 $88,953 57.4% Contribution Margin $12,708 $12,686 $19,044 $21,599 $0 $0 $0 $0 $66,037 42.6% Period Costs: Depreciation $4,753 $5,213 $2,787 $3,293 $0 $0 $0 $0 $16,047 10.4% R&D $446 $446 $966 $966 $0 $0 $0 $0 $2,824 1.8% Promotions $1,300 $1,300 $1,300 $1,300 so $0 $0 $0 $0 $5,200 3.4% Sales $1,600 $1,600 $1,400 $1,400 $0 $0 $0 $0 $6.000 3.9% Admin $237 $240 $404 $426 $0 $0 $0 $0 $1,307 0.8% Total Period $8,336 $8,799 $6,857 $7,385 $0 $0 $0 $0 $31,377 20.2% Net Margin $4,371 $3,887 $12,187 $14,214 $0 $0 $0 $0 $34,660 22.4% Other $4,681 3% EBIT $29,979 19.3% Short Term Interest $3,322 2.1% Long Term Interest $10,616 6.8% Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the Taxes $5,615 3.6% Profit Sharing $209 0.1% Net Profit $10,219 6.6%