Question

Required: As the management accountant, fill in the blank cells. (Do not round intermediate calculations. Round your final answers to the nearest whole number. Enter all amounts as positive values.) Miller Cereals Projected Income Statement For One Year Status Quo: % Increase Alternative: Single Product (Decrease) Two Products 25 % Difference $ 67,000 Sales revenue Costs Material 47,000 % 63,500 Labor 25 % 63,500 Rent 40 % 8,700 % 8,700 Depreciation Utilities % 5,700 1,350 Other Total costs Operating profit %

Answer 1

			Miller Cereals
			Projected income statement
			for One year
		Status	% increase		Alternative	Difference
		Quo	(Decrease)		Two products
		single product
Sales revenue		268000	25%		335,000	67,000
Costs
Material		47,000	35%		63,500	16,500
labor		50800	25%		63,500	12,700
Rent		30050	40%		42070	12020
depreciation		8,700	0%		8,700	0
Utilities		4,350	31%		5,700	1,350
other		60100	30%		78,165	18,065
Total costs		201000	30%		261,635	60,635
operating profit		67000	10%		73365	6365
For single product		Rent +other =		total costs- material -labor -dep-utilities
				90,150
		Rent =		30050
		other costs=		60100