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    Budgeted Income Statement Cma Adapted Easecom Company Is A

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    trilocksp Singh
    Easecom Company manufactures and maintains videoconferencing equipment. Due to a downturn in the computer industry, Easecom's financial performance declined in 2010. For 2011, Easecom's management is preparing a budget and expects equipment selling prices to increase 10% with a 6% increase in unit sales and maintenance contracts. Costs per unit are expected to rise 3% while marketing costs will increase by $250,000 and two technicians will be hired for $130,000 to improve customer service.

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    Budgeted Income Statement Cma Adapted Easecom Company Is A

    Uploaded by

    trilocksp Singh
    168 views1 page
    Easecom Company manufactures and maintains videoconferencing equipment. Due to a downturn in the computer industry, Easecom's financial performance declined in 2010. For 2011, Easecom's management is preparing a budget and expects equipment selling prices to increase 10% with a 6% increase in unit sales and maintenance contracts. Costs per unit are expected to rise 3% while marketing costs will increase by $250,000 and two technicians will be hired for $130,000 to improve customer service.

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    Easecom Company manufactures and maintains videoconferencing equipment. Due to a downturn in the computer industry, Easecom's financial performance declined in 2010. For 2011, Easecom's management is preparing a budget and expects equipment selling prices to increase 10% with a 6% increase in unit sales and maintenance contracts. Costs per unit are expected to rise 3% while marketing costs will increase by $250,000 and two technicians will be hired for $130,000 to improve customer service.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    168 views1 page

    Budgeted Income Statement Cma Adapted Easecom Company Is A

    Uploaded by

    trilocksp Singh
    Easecom Company manufactures and maintains videoconferencing equipment. Due to a downturn in the computer industry, Easecom's financial performance declined in 2010. For 2011, Easecom's management is preparing a budget and expects equipment selling prices to increase 10% with a 6% increase in unit sales and maintenance contracts. Costs per unit are expected to rise 3% while marketing costs will increase by $250,000 and two technicians will be hired for $130,000 to improve customer service.

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    © All Rights Reserved
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    Solved: Budgeted income statement CMA adapted

    Easecom Company is a
    Budgeted income statement CMA adapted Easecom Company is a

    Budgeted income statement. (CMA, adapted) Easecom Company is a manufacturer of


    videoconferencing products. Regular units are manufactured to meet marketing projections, and
    specialized units are made after an order is received. Maintaining the video-conferencing
    equipment is an important area of customer satisfaction. With the recent downturn in the
    computer industry, the video-conferencing equipment segment has suffered, leading to a
    decline in Easecom’s financial performance. The following income statement shows results for
    2010.

    Easecom’s management team is in the process of preparing the 2011 budget and is studying
    the following information:
    1. Selling prices of equipment are expected to increase by 10% as the economic recovery
    begins. The selling price of each maintenance contract is expected to remain unchanged from
    2010.
    2. Equipment sales in units are expected to increase by 6%, with a corresponding 6% growth in
    units of maintenance contracts.
    3. Cost of each unit sold is expected to increase by 3% to pay for the necessary technology and
    quality improvements.
    4. Marketing costs are expected to increase by $250,000, but administration costs are expected
    to remain at 2010 levels.
    5. Distribution costs vary in proportion to the number of units of equipment sold.
    6. Two maintenance technicians are to be hired at a total cost of $130,000, which covers wages
    and related travel costs. The objective is to improve customer service and shorten response
    time.
    7. There is no beginning or ending inventory ofequipment

    Budgeted income statement CMA adapted Easecom Company is a

    ANSWER
    https://solvedquest.com/budgeted-income-statement-cma-adapted-easecom-company-is-a/

    Reach out to [email protected] for enquiry.


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