Nandini Vemra - 3711262

ESTIMATOR Practice
Programmed Problem
ORIGINAL
Data Selection

January Sales $100,000

Sales growth rate 2%
Selling expence ration 60%
General expenses $19,000

Answer Selection

Jan Feb Mar Apr May

Sales $100,000 $102,000 $104,040 $106,121 $108,243
Expenses
Selling expenses $60,000.0 $61,200.0 $62,424.0 $63,672.5 $64,945.9
General expenses $19,000 $19,000 $19,000 $19,000 $19,000
Total expenses $79,000.0 $80,200.0 $81,424.0 $82,672.5 $83,945.9
Net income $21,000.0 $21,800.0 $22,616.0 $23,448.3 $24,297.3
Nandini Vemra - 3711262
ESTIMATOR Practice
Programmed Problem
OPTION A
Data Selection

January Sales $100,000

Sales growth rate 1%
Selling expence ratio 50%
General expenses $29,000

Answer Selection

Jan Feb Mar Apr May

Sales $100,000 $101,000 $102,010 $103,030 $104,060
Expenses
Selling expenses $50,000.0 $50,500.0 $51,005.0 $51,515.1 $52,030.2
General expenses $29,000 $29,000 $29,000 $29,000 $29,000
Total expenses $79,000.0 $79,500.0 $80,005.0 $80,515.1 $81,030.2
Net income $21,000.0 $21,500.0 $22,005.0 $22,515.1 $23,030.2

PIE CHARTS

Option A January Option A May

29000 Selling expense Selling

29000
expense
50000 General expense
52030.2005 General
expense

(V) (a)
It exceed the 20% hence does not satisfy the condition of the National Statistics
Nandini Vemra - 3711262
ESTIMATOR Practice
Programmed Problem
OPTION B
Data Selection

January Sales $100,000

Sales growth rate 4%
Selling expence ration 70%
General expenses $9,000

Answer Selection

Jan Feb Mar Apr May

Sales $100,000 $104,000 $108,160 $112,486 $116,986
Expenses
Selling expenses $70,000.0 $72,800.0 $75,712.0 $78,740.5 $81,890.1
General expenses $9,000 $9,000 $9,000 $9,000 $9,000
Total expenses $79,000.0 $81,800.0 $84,712.0 $87,740.5 $90,890.1
Net income $21,000.0 $22,200.0 $23,448.0 $24,745.9 $26,095.8

PIE CHARTS

Option B January Option B May

9000 9000

Selling
expense Selling
expense
General
expense General
expense
70000
81890.0992

Recommendation
The company should opt for option B as there is an increase in the net sales income

(V) (b)
It does not exceed the 20% hence does satisfy the condition of the National Statistics