Sales units Sales Selling price: $250 100,000 400 Selling price: $250(0.1)= $275 137500 Variable cost: $160 variable cost: $160 Fixed cost: 22500 Fixed cost: 22,500(0.1)= 24750 1. Compute the company’s current break-even point in units and dollars? Break even Units: Fixed expense/CMUnit 22500/90 = 250 CM: 250-160= 90 Dollars: Fixed expense/ Cm ratio 22500/.36= $62500 CM Ratio: units 90/ $250 selling price = .36 2. What is the company’s current margin of safety in Units, dollars and percentage? Margin of Safety (DOLLARS) Budgeted – break even = 100,000-62500= 37500 (Percentage) 37.500/100.000= 37.5% (Units) 37500/250= 150 3.Compute the company’s margin of safety in units assuming the proposal is accepted.
FI 515 Course Project a) The net cost of the spectrometer would include the original cost of the equipment, the modification costs and the increase in working capital due to having the equipment. Therefore, the net cost would be the $70,000 base costs, plus the $15,000 in modification costs and the $4,000 in capital, which equals $89,000. b) To find the operating cash flows for the three years, we have to find the cost savings after taxes and add the tax of depreciation. To find the cost savings, we have to take the $25,000 that is expected to be saved and reduce it based on a tax of 40%, or $25,000(1-.4), which equals $15,000. The tax on depreciation requires several steps to calculate.
Again, note that the actual state rate is reduced by 25% to allow for the deductibility of state income taxes on the federal income tax return. If Dana’s state tax rate increases to 10%, corporate bonds are still superior to Treasury bonds. 50. [LO 1] At the beginning of his current tax year David invests $12,000 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 10 years. David receives $700 in interest ($350 every six months) from the Treasury bonds during the current
b. The incremental revenue associated with a price reduction of $0.40 is $100,000 as follows: Original Revenue (325,000 × $5.00) | $1,625,000 | Revenue with price change (375,000 × $4.60) | 1,725,000 | Incremental revenue associated with price change | $ 100,000 | c. Yes, the price should be lowered since the incremental cost of this action ($64,000 in part a) is less than the incremental revenue ($100,000 in part b). P4. [LO 3]. a.
Ft = 80 + 15t where F t = annual sales (000 bottles ) t = 0 corresponds to 1990 a. Indicate how much the sales are increasing or decreasing? Sales are increasing by 15,000 bottles per year b. Predict sales for the year 2006 using the equation? This is a manual problem!
| | | | | * Question 4 2 out of 2 points | | | Using the data below, determine the amount of consumer surplus, if any, in the market. The market clearing price for matinee tickets is $3 | Matinee TicketsWilling to Pay(WTP) | Tony | $1 | George | $2 | Deshon | $3 | Mario | $4 | Antonio | $5 | Brittney | $6 | | | | | | Selected Answer: | $6 | | | | | * Question 5 2 out of 2 points | | | Examine the graph below. The government has placed a $200 tariff on product z. The new equilibrium price is $600. What has happened to consumer surplus?
If the MPS is .25, then it could: A. Increase taxes by $16 billion B. Increase taxes by $24 billion C. Decrease government spending by $10 billion D. Decrease government spending by $16
Prepare contributions margins in part (1) with all revisions included. 3. For the original estimates, compute each of the following: (a) Break-even point for the given sales mix. (b) Margin of safety for the estimated sales volume. 3 Part A and B (Original Estimates) | Comp Paper | Napkins | Place mats | Poster Board | Total | Volume | 30000 | 120000 | 45000 | 80000 | | Selling price | 14 | 7 | 12 | 8.5 | | Material cost | 6 | 4.5 | 3.6 | 2.5 | | Units per hour | 6 | 10 | 5 | 4 | | Variable overheads | 9 | 6 | 12 | 8 | | Variable overheads per unit | 1.5 | 0.6 | 2.4 | 2 | | | | | | | | Sales (Volume*Selling Price) | 420000 | 840000 | 540000 | 680000 | 2480000 | Material cost | 180000 | 540000 | 162000
Forecasted sales $ (Y) = 13,483.46*1000 + 121.70*1000* %spanishsp – 38.68*1000*%dryers – 81.05*1000*%freezer + 8,980.09*1000*comptype1+ 3,984.43*1000*comtype2 – 3,147.38*1000*comtype7 Figure 6 Excerpt from Summary Output Interpretation of the final multiple regression equation to answer Question 1 Pam and Sue’s Case. The equation tells us that for stores in the area with same % of Spanish people, same % of households with dryers and freezers, competitive type 1 (comtype1) stores will add on average $8,980,090 of sales dollars and comtype2 stores will add on average $3,984,430 sales dollars more than other competitive type stores. For example, everything else unchanged, comtype 7 store would actually lower sales by $3,147.380 compared with other comtype
Problem 13-10 11th Edition Complete the balance sheet and sales information in the table that follows for Hoffmeister Industries using the following financial data: Debt Ratio: 50% Quick ratio: 0.80x Total assets turnover: 1.5x Days sales outstanding: 36.5 days Gross profit margin on sales: (Sales – Cost of goods sold)/Sales = 25% Inventory turnover ratio: 5x Answer: 1)Debt Ratio= Total Liab/Total Asset 50%= Total Liab/300,000 Total Liab= 15,000,000/100 Total Liab= 150,000 2) Total liab= Acct Payable+Lt Debt Acct Payable= 150,000-60,000 Acct Payable= 90,000 3) Total Asset Turnover= Sales/Total Assets 1.5= Sales/300,000 Sales= 300,000x1.5 Sales= 450,000 4) Inv Turnover= Sales/Inv 5= 450,000/Inv Inv= 450,000/5 Inv= 90,000 5) Quick ratio= (Current Asset-Inv)/Current Liab 0.8= (CA-90,000)/90,000 CA= 90,000+72,000 Current Asset= 162,000 6) Profit margin on sales= (sales-COGS)/Sales 25%= (450,000-COGS)/450,000 11,250,000= 450,000-100.COGS 100.COGS= 450,000-11,250,000 100.COGS= 33,750,000 COGS= 33,750,000/100 Cost of Goods Solds= 337,500 7) Days sales outstanding= Acct Receivable / (sales/365) 36.5= Acct Receivable / (450,000/365) 36.5= A/R / 1,233 A/R= 1,233x36.5 Acct Receivable= 45,000 8) Current Asset= Cash+A/R+Inv 162,000= Cash+45,000+90,000 Cash= 27,000 9) Total Asset= Current Asset+Fixed Asset 300,000= 162,000+FA Fixed Asset= 138,000 10) Total Liab and Equity= Total Liability+Common Stock+Retained Earning 300,000= 150,000+C/S+97,500 Common stock=