Answer the following 2 questions based on the information in the spreadsheet you created below: Year 1 Year 2 Year 3 Year 4 $ % $ % $ % $ % Net Sales $ 500,000.00 100.00% $ 540,000.00 100.00% $ 577,800.00 100.00% $ 612,468.00 100.00% Cost of goods 265,000.00 53.00% $ 283,500.00 52.50% $ 300,456.00 52.00% $ 321,545.70 52.50% Gross Margin 235,000.00 47.00% $ 256,500.00 47.50% $ 277,344.00 48.00% $ 290,922.30 47.50% Operating expenses 210,000.00 42.00% $ 226,800.00 42.00% $ 245,565.00 42.50% $ 257,236.56 42.00% Operating proft 25,000.00 5.00% $ 29,700.00 5.50% $ 31,779.00 5.50% $ 33,685.74 5.50% 1. What can Mr. Ptolemy do to achieve the gross margin percentage goal set for the third and fourth years? Hint: What factors and elements of a P & L statement affect gross margin %?(List at least 2 things) 2. What efforts should Mr. Ptolemy make in the third and fourth years to reach the 5.5% operating profit goal, overcoming the tough economy and competition? Hint: Refer to course notes to figure out what affects profits and be creative in making suggestions as to what specific things Mr. Ptolemy can do to maximize his profits.

Answer the following 2 questions based on the information in the spreadsheet you created below: Year 1 Year 2 Year 3 Year 4 $ % $ % $ % $ % Net Sales $ 500,000.00 100.00% $ 540,000.00 100.00% $...

Answer the following 2 questions based on the information in the spreadsheet you created below:

	Year 1		Year 2		Year 3		Year 4
	$	%	$	%	$	%	$	%
Net Sales	$ 500,000.00	100.00%	$ 540,000.00	100.00%	$ 577,800.00	100.00%	$ 612,468.00	100.00%
Cost of goods	265,000.00	53.00%	$ 283,500.00	52.50%	$ 300,456.00	52.00%	$ 321,545.70	52.50%
Gross Margin	235,000.00	47.00%	$ 256,500.00	47.50%	$ 277,344.00	48.00%	$ 290,922.30	47.50%
Operating expenses	210,000.00	42.00%	$ 226,800.00	42.00%	$ 245,565.00	42.50%	$ 257,236.56	42.00%
Operating proft	25,000.00	5.00%	$ 29,700.00	5.50%	$ 31,779.00	5.50%	$ 33,685.74	5.50%

1. What can Mr. Ptolemy do to achieve the gross margin percentage goal set for the third and fourth years?

- Hint: What factors and elements of a P & L statement affect gross margin %?(List at least 2 things)

2. What efforts should Mr. Ptolemy make in the third and fourth years to reach the 5.5% operating profit goal, overcoming the tough economy and competition?

Hint: Refer to course notes to figure out what affects profits and be creative in making suggestions as to what specific things Mr. Ptolemy can do to maximize his profits.

Jun 11, 2022

SOLUTION.PDF

Answer the following 2 questions based on the information in the spreadsheet you created below: Year 1 Year 2 Year 3 Year 4 $ % $ % $ % $ % Net Sales $ 500,000.00 100.00% $ 540,000.00 100.00% $...

Get Answer To This Question

Related Questions & Answers

Submit New Assignment