1. How can a relative profitability analysis conducted by a business provide better information for a business than an absolute profitability analysis?

Your response should be at least 200 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. For problems, be sure to answer all questions and provide all requested information.

2. Peanut Processing Company produces cans of peanuts. The company expects sales of 15,000 cans in January, 16,000 cans in February, 17,000 cans in March, and 17,000 cans in April. There are 1,500 cans in inventory at the beginning of January. The company tries to maintain a monthly ending inventory of cans of peanuts equal to 10% of the next months projected sales.

Prepare a production budget for the company for the months of January, February, and March.

3. What is a profitability index, and how can it assist management in making better decisions for the business?

Your response should be at least 200 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. For problems, be sure to answer all questions and provide all requested information.

4.

Turkey Treats Company makes a product that is popular at Thanksgiving, so its biggest sales month is November. The company’s projected sales for the fourth quarter of this year are:

All sales are made on credit, and the company projects that 50% of sales each month will be collected in the month that the sales are made, 30% will be collected in the month following the sales, and 20% will be collected in the second month after the sale. August sales totaled $10,000 and September sales totaled $20,000. Prepare a schedule of cash collections from sales for each month in the fourth quarter.