Free Essay

Budgeting

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Submitted By brandonjhurst
Words 263
Pages 2
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|[pic] |
|RE: Midterms |
|Professor Layvand [pic] |
|11/19/2011 5:34:50 AM |
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|Modified:11/19/2011 6:14 AM |
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|Brandon, |
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|Here's an example of a CVP problem: |
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|Assuming a target profit of 75,000, a corp, tax rate of 30%, a sale unit price of $500, VC per unit of $250, and FC of $25,000, let's first|
|calculate the breakeven point in dollars and units and then use the CVP formula to calculate the # of units to be for the target profit. |
|Using ABB principles, calculate the workforce needed to prepare 100 tax returns at a public accounting firm. The following data is |
|available regarding the time necessary to document and prepare simple and complex tax returns. |
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|The tax preparation process is broken down into "units." It takes one employee 1 hour to process 2 tax returns. |
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|A simple tax return represents |
|1 unit |
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|A complex tax return represents |
|2 units |
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|The following chart summarizes the time necessary to prepare a tax return: |
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|Simple tax return |
|15 minutes |
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|Complex tax return |
|30 minutes |
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|The following is the expected sales budget in units for the next month: |
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|Simple tax returns budgeted to be made |
|100 |
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|Complex tax returns budgeted to be made |
| 30 |
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|In addition, 1 employee will need 1 hour of worktime in order to setup for the day, and 1 employee will need 2 hours per day to clean up. |
|Assume a 20-day month with 40-hour work weeks. How many employees will be needed for the required workload? Support your response with |
|calculations and a rationale. |
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