A firm thinks its consumer promotion expenditures are too high and wants to cut $500,000 from the budget. Management estimates it will lose 10,000 units in sales if it does. If the gross margin is $40 per unit, does cutting the promotion budget make sense?
Q: Need help
A: To determine Garrett Industries' cash conversion cycle and resource investment requirement, we'll…
Q: A company normally
A: Step 1:As per inventory valuation method of lower of cost or market value inventory is valued at the…
Q: A post-closing trial balance contains only ___? a) Revenue accounts b) Expense accounts c) Permanent…
A: Explanation of Post-Closing Trial Balance: A post-closing trial balance is a list of all permanent…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near…
A: Hello student! To generate the Flexible Budget Performance Budget, let us first make the three types…
Q: Please answer and provide explanations.
A: A step-by-step explanation of how I calculated the projected statement of cash flows for OctoberStep…
Q: What was the average collection period in days on these general accounting question?
A: Step 1: Define Accounts Receivable TurnoverThe accounts receivable turnover is a ratio that measures…
Q: 1. The company can purchase the equipment by borrowing $220,000 with a 23-month, 12% installment…
A:
Q: The economic order quantity (EOQ) is used to: a) Maximize inventory levels b) Determine credit terms…
A: The correct answer is:d) Minimize total inventory costsThe Economic Order Quantity (EOQ) is a…
Q: How many
A: Explanation of Return on Investment (ROI):Return on Investment (ROI) is a financial metric used to…
Q: refer following data
A: Part (a): Calculate the Gross Profit RatioThe Gross Profit Ratio is calculated using the formula:…
Q: Balance required in allowance for expected credit losses account
A: Explanation: The balance required in allowance for expected credit losses account can be calculated…
Q: Need help
A: Step 1: Define Applied OverheadApplied overhead refers to the estimated overhead expense. It is the…
Q: Need answer the accounting question
A: Step 1: Define Straight-line DepreciationThe straight-line depreciation is the most simple method of…
Q: Financial Accounting problem give step by step answer
A: Explanation of Shares Outstanding: Shares outstanding refer to the total number of a company's…
Q: Solve general accounting question not use ai
A: Step 1: Define Inventory valuationA firm assigns a monetary value to the things that make up its…
Q: Based on the trial balance and Income statement provided: 1. Prepare the company’s statement of…
A:
Q: Solve these accounting issue
A: In order to accurately determine Bellfont's production cost per door stopper for September, we must…
Q: I need help please with #10 and adjustments 1-5
A: Adjustments 1-5Supplies Adjustment:Initial supplies: $11,880Supplies remaining at year-end:…
Q: Give me answer
A: Explanation of Absorption Costing: Absorption costing is a method that includes all manufacturing…
Q: Accounting
A: Step 1: Define Price Earning RatioThe price earning ratio is an important financial ratio that is…
Q: Answer in step by step with explanation. Don't use Ai and chatgpt.
A: STEP 1: Key InformationYour gathered details are correct:Harper owns 40% of Moore.Purchase price is…
Q: Please provide answer this accounting question do fast and step by step calculation
A: Step 1: Define High Low MethodThe High-low method is used to break the mixed cost into its…
Q: 11-36 financial accounting
A: Explanation of Debt Covenants:Debt covenants are agreements between a borrower and a lender that…
Q: Need answer the accounting question
A: Step 1:- Introduction to the DuPont AnalysisAs per the DuPont Identity, the return on equity is…
Q: rm.1
A: Part 1: Normal Profit = Total Cost × 35%NRV minus NP = NRV - Normal ProfitMarket Value for each…
Q: BC 266: EXCEL PROBLEM PR 17-2A:VERTICAL ANALYSIS For 2016, Indigo Corp. initiated a sales…
A: Vertical analysis is a method of financial statement analysis in which each line item is listed as a…
Q: account answer wanted
A: A recognized gain is when an investment or asset is sold for more than originally paid. Recognizing…
Q: Help me please asap. Don't use any AI. It's strictly prohibited. Thanks
A: Assets are resources owned by the business that have future economic value. From the list provided,…
Q: Explanation please
A: Accounting Treatment for Intangible Assets1. Definition of Intangible AssetsIntangible assets are…
Q: Want Correct Answer in General Accounting
A: To calculate the cash Beyonce Ltd. paid to suppliers for inventory during the fiscal year ending May…
Q: Hard Question of financial accounting. Please if you don't know answer don't accept it
A: Explanation of Special Order: A special order is a one-time order that differs from a company's…
Q: Blossom Company, a machinery dealer, leased a machine to Crane Corporation on January 1, 2025. The…
A: Part (a): The Present Value from the table is 6.58238.Amount of the Lease Receivable = Annual…
Q: Question: Slapshot Company makes ice hockey sticks. On June 1, Slapshot had $48,000 of materials in…
A: Step 1:Direct material used in production is Beginning inventory+ material purchase - ending…
Q: Hi expert give answer
A: determine the amount and type of gain Frank recognizes upon selling the equipment, we need to…
Q: Ans
A: Explanation of Embezzlement: Embezzlement is the act of wrongfully taking or misappropriating funds…
Q: Raleigh Department Store uses the conventional retail method for the year ended December 31, 2022…
A: Let's first organize the data and calculations needed to find the ending inventory for 2022 using…
Q: Answer in step by step calculation for this accounting question Don't use chatgpt
A: Step 1: Define Asset TurnoverThe asset turnover ratio is a measure of the efficiency of the company…
Q: Prepare the entry Question 1
A: Explanation of Inventory Perpetual Records: Inventory perpetual records refer to an accounting…
Q: Only experts answer not use ai on these accounting question
A: Step 1: Define Property, Plant and EquipmentIn property, plant and equipment, an item should…
Q: Standard Manufacturers produces steel doors for the furniture industry in a four-stage process –…
A: Step 1: Equivalent Units and Cost per Equivalent UnitGiven Data Recap:Units transferred in from…
Q: Coastal's balance sheet for a recent year revealed the following information Current assets…
A: The formula for computing the working capital is:Working Capital = Current Assets - Current…
Q: Need answer the accounting question please answer do fast
A: Step 1: Define High-low MethodThe High-low method is used to separate total costs into fixed cost…
Q: Provide correct calculation for these accounting question
A: Step 1: Define Market-to-book ratioMarket-to-book ratio depicts the relationship between the value…
Q: give answer
A: To determine how Horton Stores should record the new land and the gain or loss on this exchange,…
Q: General accounting
A: Explanation of Contribution Margin: Contribution margin is the difference between sales revenue and…
Q: Use FIFO METHOD
A: Explanation of FIFO Method: First-In-First-Out (FIFO) is an inventory valuation method that assumes…
Q: Given the following data, use present worth analysis to find the better alternative, A or B. Use an…
A: The problem pertains to present worth analysis. Present Worth Analysis, also referred to as Net…
Q: What is the pro forma net income expected to be? On these general accounting question
A: Step 1: Define Net IncomeThe difference between the sales revenue and the costs incurred to generate…
Q: Juan Diego began the year with a tax basis in his partnership interest of $51,400. During the year,…
A: To determine the carryover amounts and their character for Juan Diego's $1231 losses and short-term…
Q: Need answer in medium short format
A: Impact of Adopting a New Accounting Standard on Financial Statements, Ratios, and Implementation…
short account answer want
Step by step
Solved in 2 steps
- Earl Massey, director of marketing, wants to reduce the selling price of his company’s products by 15% to increase market share. He says, “I know this will reduce our gross profit rate, but the increased number of units sold will make up for the lost margin.” Before this action is taken, what other factors does the company need to consider?2. The sales for T-2 are decreasing and the purchase costs are increasing. The firm might drop T-2 and sell only T-1. Barbour allocates fixed costs to products on the basis of sales revenue. When the president of Barbour saw the income statements (see below), he agreed that T-2 should be dropped. If T-2 is dropped, sales of T-1 are expected to increase by 10% next year, but the firm’s cost structure will remain the same. T-1 T-2 Sales $ 245,000 $ 296,000 Variable costs: Cost of goods sold 79,000 148,000 Selling & administrative 19,000 59,000 Contribution margin $ 147,000 $ 89,000 Fixed expenses: Fixed corporate costs 69,000 84,000 Fixed selling and administrative 21,000 30,000 Total fixed expenses $ 90,000 $ 114,000 Operating income $ 57,000 $ (25,000 ) Required: 1. Find the expected change in annual operating income by dropping T-2 and selling only T-1. 2. By what percentage…XYZ Company is facing changes in its cost structure so that fixed costs will increase from $400,000 to $500,000, but variable costs will decrease from $12 per unit to $10 per unit. If it were to implement these changes at its current production level of 50,000 units (with no change to selling price), profit would not change. What would happen to the company's profit if the changes were implementedand production decreased to 45,000 units? a. It will increase. b. It will decrease. c. It will stay the same. d. none of the given answers
- How much would be the net effect on the total segment profit if product B is dropped and discontinued? Assume that by dropping product B, product A would increase A's sales by 80%. How much would be the net effect on the total segment profit? Assume that by dropping product B, product A would decrease A's sales by 20%. Moreover, 30,000 of common costs allocated are avoidable. How much would be the net effect on the total segment profit?The company’s marketing team estimates that sales volume could be increased to 5,000 units per month if the sales price was lowered from $150 to $125 per unit. The production manager has confirmed that they have the capacity to increase production to this level. Assume that the cost pattern will not vary at the increased level of production. If management decreases the price, what would the impact on monthly sales, income and costs be? For each figure, indicate whether the change will result in an increase, decrease or no change in the sales, income and cost. Would you recommend the reduction in sales price? Why or Why not? (Show all supporting calculations). (NOTE: ignore taxes or other costs not specifically mentioned in the questions.)Danna Martin, president of Mays Electronics, was concerned about the end-of-the year marketing report that she had just received. According to Larry Savage, marketing manager, a price decrease for the coming year was again needed to maintain the companys annual sales volume of integrated circuit boards (CBs). This would make a bad situation worse. The current selling price of 18 per unit was producing a 2-per-unit profithalf the customary 4-per-unit profit. Foreign competitors kept reducing their prices. To match the latest reduction would reduce the price from 18 to 14. This would put the price below the cost to produce and sell it. How could these firms sell for such a low price? Determined to find out if there were problems with the companys operations, Danna decided to hire a consultant to evaluate the way in which the CBs were produced and sold. After two weeks, the consultant had identified the following activities and costs: The consultant indicated that some preliminary activity analysis shows that per-unit costs can be reduced by at least 7. Since the marketing manager had indicated that the market share (sales volume) for the boards could be increased by 50% if the price could be reduced to 12, Danna became quite excited. Required: 1. CONCEPTUAL CONNECTION What is activity-based management? What phases of activity analysis did the consultant provide? What else remains to be done? 2. CONCEPTUAL CONNECTION Identify as many nonvalue-added costs as possible. Compute the cost savings per unit that would be realized if these costs were eliminated. Was the consultant correct in the preliminary cost reduction assessment? Discuss actions that the company can take to reduce or eliminate the nonvalue-added activities. 3. Compute the unit cost required to maintain current market share, while earning a profit of 4 per unit. Now compute the unit cost required to expand sales by 50%, assuming a per-unit profit of 4. How much cost reduction would be required to achieve each unit cost? 4. Assume that further activity analysis revealed the following: switching to automated insertion would save 60,000 of engineering support and 90,000 of direct labor. Now, what is the total potential cost reduction per unit available from activity analysis? With these additional reductions, can Mays achieve the unit cost to maintain current sales? To increase it by 50%? What form of activity analysis is this: reduction, sharing, elimination, or selection? 5. CONCEPTUAL CONNECTION Calculate income based on current sales, prices, and costs. Then calculate the income by using a 14 price and a 12 price, assuming that the maximum cost reduction possible is achieved (including Requirement 4s reduction). What price should be selected?
- Carpetland salespersons average 8,000 per week in sales. Steve Contois, the firms vice president, proposes a compensation plan with new selling incentives. Steve hopes that the results of a trial selling period will enable him to conclude that the compensation plan increases the average sales per salesperson. a. Develop the appropriate null and alternative hypotheses. b. What is the Type I error in this situation? What are the consequences of making this error? c. What is the Type II error in this situation? What are the consequences of making this error?Hammond Company runs a driving range and golf shop. The budgeted income statement for the coming year is as follows. Required: 1. What is Hammonds variable cost ratio? Its contribution margin ratio? 2. Suppose Hammonds actual revenues are 200,000 greater than budgeted. By how much will before-tax profits increase? Give the answer without preparing a new income statement. 3. How much sales revenue must Hammond earn in order to break even? What is the expected margin of safety? (Round your answers to the nearest dollar.) 4. How much sales revenue must Hammond generate to earn a before-tax profit of 130,000? An after-tax profit of 90,000? (Round your answers to the nearest dollar.) Prepare a contribution margin income statement to verify the accuracy of your last answer.The president of Poleski would like to know the effect that each of the following suggestions for improving performance would have on contribution margin per unit, sales needed to break even, and projected net income for next year. Each change should be considered independently. Reset the Data Section to its original values after each suggestion is analyzed. Fill in the table following the suggestions with the results of your analysis. a. The president suggests cutting the products price. Since the market is relatively sensitive to price, . . . a 10% cut in price ought to generate a 30% increase in sales (to 156,000 units). How can you lose? b. The sales manager feels that putting all sales personnel on straight commission would help. This would eliminate 77,000 in fixed sales salaries expense. Variable sales commissions would increase to 2.00 per unit. This move would also increase sales volume by 30%. c. Poleskis head of product engineering wants to redesign the package for the product. This will cut 1.00 per unit from direct materials and 0.50 per unit from direct labor, but will increase fixed factory overhead by 100,000 for additional depreciation on the new packaging machine. The package redesign would not affect sales volume. d. The firms consumer marketing manager suggests undertaking a new advertising campaign on Facebook. This would cost 30,000 more than is currently planned for advertising but would be expected to increase sales volume by 30%. e. The production superintendent suggests raising quality and raising price. This will increase direct materials by 1.00 per unit, direct labor by 0.50 per unit, and fixed factory overhead by 110,000. With improved quality, . . . raise the price to 18.50 and advertise the heck out of it. If you double your current planned advertising, Ill bet you can increase your sales volume by 30%.
- Kindly, answer the following: a. The sales manager feels that an P110,000 increase in monthly advertising budget, combined with an intensified effort by the sales staff will result in a P840,000 increase in monthly sales. Considering these changes, what will be the company’s increase or decrease in profit? b. The president is convinced that a 10% reduction in the selling price, combined with an increase of P35,000 in the monthly advertising budget, will cause units sales to double. Considering these changes, how much is the company’s expected profit? c. A new package for the product is being considered to induce sales. This package costs P0.60 per unit. Considering the new package cost, how many units would have to be sold each month to earn a profit ofP90,000?XYZ Company is facing changes in its cost structure so that fixed costs will decrease from $800,000 to $700,000, but variable costs will increase from $10 per unit to $12 per unit. If it were to implement these changes at its current production level of 50,000 units (with no change to selling price )profit would not change. What would happen to the company's profit if the changes were implemented and production increased to 55,000 units?Thomas Company buys and sells a product that has a variable cost per unit of $14. Thomas' fixed costs amount to $66,000. The product sells for $18 each. Thomas currently expects to make and sell 23,000 units. Management has an opportunity to reduce its variable cost per unit by one dollar. If Thomas passes the savings on to its customers by lowering the sales price, the lower sales price will increase sales by 1,000 units. If management Implements the new pricing strategy, profitability will Multiple Choice increase by $8,000. decrease by $12,000. decrease by $20,000. increase by $4,000.