Marthews Industries makes solvent and is suffering from inte

Marthews Industries makes solvent and is suffering from intense competition. Its results for the most recent month are as follows: Assignment 1. MATHEWS INDUSTRIES INC Partial Income Statement Solvent For the Month Ending 31 December 2017 S131.250 Sales (1.875 units).... goods sold: Direct materials. Direct labor 51.187.50 17,812.50 16,875.00 Variable manufacturing cost Fixed manufacturing cost Cost of goods sold Gross profit Selling and administrative expenses: Variable selling and administrative expenses. Fixed selling and administrative expenses Loss from 127.875 S 3.375 S 9.375 24,100 33,475 S (30,100) Assuming January 2018 volumes are as per December 2017 on an ongoing basis, what i achieve a monthly profit from operations of S50,000 long term? Guidance: use the \"mark-up\" approach. 2. Mott is preparing a cash budget for the next 4 years. Specifically a major new investment is planned at the start of 2018 with a useful life of 10 years. This is expected to increase sales but to customers who tend to pay more slowly. The shareholders expect annual dividends of $9,000 per year. The company\'s bonds of $13,000 must be repaid (cash outflow) in 2018 and there are no other inflows or outflows of finance or investment projected in 2018-2021. Opening cash at I January 2018 is known to be $54,000. The projections are shown below. 2018 2019 2020 2021 Investment S 200,000 . S 300,000 310,000 S 320,000 330,000 200.000 200,000 60,000 70,000 21,000 35,000 Sales revenue of goods sold 200,000 40,000 21,000 200,000 50,000 21,000 Cash operating costs Accounts receivable (balance sheet) Accounts Payable (balance 19,000 40,000 50,000 60,000 70,000 sheet) 1,000 20,000 25.000 30,000 35,000 In addition tax payments have not been included in these figures. The tax rate is projected to be 35% a. b. c. Prepare the budget income statement 2018-21 Prepare the four year cash budget using the indirect AND direet method. You may ignore interest: Comment on finance needs

Solution

As per policy, only one question is allowed to answer, so answering question 1 :

1)

The Sales price per unit is necessary to achieve a monthly profit of $50000 = Sales of december + loss from operations + expected income on monthly basis for long term = $131250 + $30100 + $50000 = 211350 / 1875 units = $112.72

so, the necessary Sales price per unit is $112.72