1. Question: (TCO4) In a merchandising business, gross profit is equal to sales revenue minus: Your Answer: Instructor Explanation: Merchandising companies are those that buy products and resell them to the end consumer, so the cost of the product sold is usually their largest cost. Their income statement should start with revenues minus cost of goods sold equals gross profit. Points Received: 5 of 5 Comments: 2. Question: (TCO4) BMX Co. sells item XJ15 for $1,000 per unit, and has a cost of goods sold percentage of 80%.
The manager cited the resulting high depreciation charges as the justification for the price boost. He asked the president of the company to instruct Division P to buy from S at the $220 price. He supplied the following information: P's annual purchases of component 2,000 units S's unit and batch-related costs per unit $190 S's capacity related costs per unit $20 S's required return on investment $10 Suppose there are no alternative uses of the S facilities. Required 1) Will the company as a whole benefit if P buys from the outside suppliers for $200 per unit? 2) Suppose the selling price of outsiders drops another $15 to $185.
At that time "footwear in the US is a 40 billion dollar market and 5% of that is already being sold by paper mail order catalogs," Hsieh and Lin decided to invest $500,000 through their investment firm Venture Frogs. The company was officially launched in June 1999, under the original domain name "ShoeSite.com". A few months after their launch, the company changed their name from ShoeSite to Zappos (a variation of "zapatos," the Spanish word for "shoes") not to limit themselves to selling only footwear. After minimal gross sales in 1999, Zappos revenue in 2000 was $1.6 million. In 2001, Zappos more than quadrupled their yearly sales, bringing in $8.6 million.
This provides the company with the information that in order to reach the 2,400 million dollars in sales the set advertising budget must be set at 162 million dollars. With this in mind based on the figures in order to reach the expected sales the company would have to produce an average of 47 million units per quarter. To determine the fluctuations in the market a 2-period weighed moving average model is used with a weight of 0.9 representing the most recent view and 0.1 in the previous view. The data range for this calculation consists of a six-year period in order to reduce the occurrence of obsolete trends and violations that no longer apply to the market. Predictions: Quarter Sales in millions Units in millions Current Forecast of Units in millions 1 512
According to the text, the exception amount for active owners is phased out as income increases: the $25,000 maximum exception amount is phased out by 50 cents for every dollar the taxpayer’s adjusted gross income (before considering the rental loss) exceeds $100,000. 120,000-100,000*.5= 10,000 phase out 25,000-10,000= 15,000 total deductible loss; Alexa can still deduct the $2,400 because her loss is less than the 15,000. New AGI 120,000-2,400= $117,600 d. Assume that Alexa’s AGI from other sources is $200,000. This consists of $150,000 salary, $10,000 of dividends, and $25,000 of
Such as a suit store will have ties selling at ten dollars per unit, shirts at thirty per unit, paints and so on, this is an example of sales mix. The formula illustrated in chapter 6-12, as I show above, which uses unit selling price minus unit variable costs equals contribution margin per unit. if you use this formula and if you increase the unit selling price you will have a higher contribution margin per unit. An example of this is; if my company DL inc. sells dishwashers at eight hundred dollars per unit and its variable cost per unit is three hundred dollars , how much it cost to make, my contribution margin is five hundred dollars. So if I raise my dishwashers sales from eight hundred dollars to nine hundred I will increase my contribution margin by a hundred dollars.
At 10 cents each, the expected revenue of $500 per day, and the amount will be lost while the copier is broken. The standard number of breakdowns per year to be 12.255 (dividing 52 weeks/year by 4.243 weeks/breakdown), the profit lost per breakdown to be $1,125 (days lost/breakdown * revenue lost/day), and finally the profit lost per year due to breakdowns to be $13,787 (breakdowns/year * profit lost/breakdown). 6. The profits lost per year due to breakdowns is $13,787, which is bigger than $12,000, they should procure a backup copier. A high
$30,000 of depreciation on the equipment used to manufacture the parts. c. The supervisor's salary of $25,000, which would be avoided if the part is purchased from an outside supplier. d. $15,000 in rent from leasing the production space to another company if the part is purchased from an outside supplier. status: correct (1.0) correct: b your answer: b feedback: Correct. ________________________________________ 2 The following information pertains to the Norfolk Company's three products: Product B's production is increased to 700 units per year but B's selling price on all units of B is reduced to $8.00.
Calculate the Cash Discounts for all Merchandise Purchased. a. Wanda’s Wax i. $2,000.00 worth of inventory with terms of 2/10, net 30 EOM - means that if this amount owed is paid on March 10th, (when the Cash Discount ends) the total cost saved is $40.00. Caty’s Candles would only pay $1,960.00 by March 10. b. Scented Oil from Sally’s Scents ii. $800.00 with terms of 1/10, net 40 EOM – means that if this amount owed is paid on March 10th (when the Cash Discount ends) the total cost saved $8.00.
I. HIGH VOLUME CUSTOMERS (defined as purchasing $75,000 of merchandise from Johnson’s per year) A. Functionally damaged goods may be returned to Johnson’s plant at Johnson’s expense with a full refund. B. High volume customers will receive a straight 2% deduction off of the wholesale selling price to cover defectives—whether defectives are classified as cosmetically damaged or slow moving items, except when unable to sell due to special circumstances (see Section III). II.