COMM 387 Lecture Notes - Lecture 1: Variable Cost
Document Summary
Current date: february 2017 start planning for april 1 launch. Sales are 60% cash, 40% paid in the next month. Commission = 15% of sales paid through payroll. Capital budget: purchase used delivery truck, march 31. Production budget: goods purchased -cgs = 70% of sales, per unit variable cost of 5% of selling price. Overhead budget: rent = ,600 paid on the first of the month, insurance = per month, full year paid in advance, fixed wages = ,700 per month. Payroll = month"s wages paid with month delay. Inventory budget: ending inventory = ,000 + 80% of expected cgs for the month, payment on purchases is of current month purchases plus of previous month purchases. Financial transactions: founder provides a loc at 1. 5% on previous month"s closing balance.
