(a) Apply cost-volume-profit analysis to examine SLS’s break-even point for May 2013. Base your analysis on the assumption that only group classes are offered. Clearly state any other relevant and reasonable assumption(s) you made in your analysis. Explain the implications of your assumption(s) and analysis for the owners of SLS.(30 marks)

Portal Corporation produces the same laser printer in two Utah plants, a new plant in Ogden and an older plant in Sandy. The following data are available for the two plants: All fixed costs per unit are calculated based on a normal capacity usage consisting of 240 working days. When the number of working days exceeds 240, overtime charges raise the variable manufacturing costs of additional units by $ 5.00 per unit in Ogden and $ 10.00 per unit in Sandy. Portal Corporation is expected to produce and sell 120,000 laser printers during the coming year. Wanting to take advantage of the higher operating income per unit at Sandy, the company’s production manager has decided to manufacture 60,000 units at each plant, resulting in a plan in which Sandy operates at maximum capacity ( 200 units per day * 300 days) and Ogden operates at its normal volume ( 250 units per day * 240 days). Required 1. Calculate the breakeven point in units for the Ogden plant and for the Sandy plant. 2. Calculate the operating income that would result from the production manager’s plan to produce 60,000 units at each plant. 3. Determine how the production of 120,000 units should be allocated between the Ogden and Sandy plants to maximize operating income for Portal Corporation. Show yourcalculations.

Compute the number of shows needed each year to break even. Compute the number of performances needed each year to earn a profit of $3,262,500. Is the goal of earning profit of $3,262,500 realistic? Explain why or why not. Provide a rationale to support your

Nathan Herrmann has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CEO Consultants.

   Listed below in random order are line items to be included in the statement of cash flows.

  Purchase of equipment $ 227,000   Increase in inventory 27,000   Increase in prepaid rent 5,500   Payment of dividends 36,000   Depreciation expense 10,000   Increase in accounts receivable 51,000   Increase in accounts payable 20,000   Loss on sale of land 10,500   Net income 62,000   Repayment of notes payable 44,000   Cash received from the sale of land 5,000   Issuance of common stock 247,000

Prepare the statement of cash flows for CEO Consultants using the indirect method. (Amounts to be deducted and negative values should be indicated by minus sign. Omit the “$” sign in your response.)

Mr. Potts issued a 90-day, 7% note for $200,000, dated February 3rd to Valley Co. on account. (Assume a 360-day year when calculating interest.)