Blue Valley Resort Profit Analysis 7000000 3500000062585000

Blue Valley Resort Profit Analysis $70,000.00 $350,000.00$625,850.00 $180,00C.00 $ 4 Sales 5 Cost of Sales $190,251.00 $222,120.00 $1,638,221.00 537,380.00 359,465.00 36,715.00106,500.00 1479C.00 25,600.00 4,750.0053,890.00 252,975.00 5,125.008,650.00 22,475.00 6,940.00 Indirect 8 Admi 9 Rent $3,097.87$15,489.36$27,697.19 $7,965.96 8,419.62 $9,829.99 6,100.60 $72,500.00 21,474.10 9,827.73 4,382.47 14,641.43 17,573.39 2,196.2213,909.36 2,928.29 5,054.26 61,250.00 46,000.00 12 500.00 5,342.106,236.96 2,838.65 904.38 6,067.93 965.55 1,245.02 2,589.64 448.21 932.27 5.904.38 6,215.14 19,961.0 26,000.00 52,250.00 1,243.03 63.02 5,740.98 22,337.90 $42,482.0 $27,920.25 $270,500.00 $1,303.72 $118,157.77 (541,801.29) $134,437.10 $80,168.95 $178,609.75 470,876.00 25,100 15 Net Income 2,500 $72,500.00 $61,250.00 $46,000.00 $52,250.00 2 28 2. In order to have the Total Net Income Equal to $490,000.00, thee Goa 2

Solution

Ans.1 In order to have have theTotal income $500,000, the administrative expenses must be (W.N.1): $ 76,984.17 Ans.2 In order to have have the Total income $490,000, the electricity expenses must be (W.N.2): $ 47,868.23 Ans.3 In order to have have the Total income $480,000, the maintenance expenses must be (W.N.3): $ 26,503.79 Working Notes: 1) Administrative expenses: ( Administrative expenses/Net income ) x 500000 (72,500/470,876) x 500,000 $ 76,984.17 2) Electricity Expenses: ( Electricity expenses/Net income ) x 490,000 (46,000/470,876) x 490,000 $ 47,868.23 3) Maintenance Expenses: ( Maintenance expenses/Net income ) x 480,000 (26,000/470,876) x 480,000 $ 26,503.79