ABC Company has December unit sales of 12,000 units. Assuming a 5 percent growth, what is the projected unit sales?
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- ABC Company has December unit sales of 12,000 units. Assuming a 5 percent growth, what is the projected unit sales? SolutionABC Company has December unit sales of 12,000 units. Assuming a 5 percent growth, what is the projected unit sales?ABC Company has December unit sales of 12,000 units. Assuming a 5 percent growth, what is the projected unit sales? Need answer
- Account questions: Assuming that a company has $365 million in annual sales, and a gross margin of 20%, how much investment will each additional day of sales in inventory require?Zephyr sales company has sales of 1.125 million. If the company's management expects sales to grow 6.5 percent annually, how long will it be before sales double?TransCan Industries has been operating at 55 percent capacity the past few years. In each of these years, TransCan generated sales of $7.15 million. By what percentage can TransCan increase its sales before full capacity is reached? Round your answer to two decimal places. %
- Suppose the company has just the opposite news and now expects unit sales for August, September, and October to be double (200%) the original estimates. What effect will this have on the company’s net income and borrowing? Explain your findings.Last year, Orion Enterprises had the following results: ⚫ Sales = $800,000 Variable expenses = $480,000 Fixed expenses = $120,000 a. What is the degree of operating leverage at the current level of sales? b. If sales increase by 10% next year, by how much will net operating income increase (in dollars)?KIEMS ltd has a current sales level of Sh 25,000,000. It has established that sales will be growing at 10% per annum for the next several years. Current assets, fixed assets, creditors and accruals vary directly with sales in the proportions of 70%, 35%, 25% and 8% respectively. On the other hand, income statement bear the following ratios to the level of sales; cost of sales 47%, Administration expenses 25%, Selling expenses 17% and other expenses 20%. The company retains 100% of profits and does not fall in the income tax bracket. Any surplus would be invested in the marketable securities while a deficit would be sourced externally. The current capital structure has been established as follows: Share capital 1,000,000 Long term loans 4,500,000 Retained earnings 1,000,000 Required: Prepare the proforma income statement and statement of financial position after four years
- Teal Company has a DOL of 120%. If sales were to increase by 5%, what is the expected impact on Earnings Before Interest and Tax (EBIT)?PB&J Eatery has a monthly target operating income of $8,400. Variable expenses are 60% of sales and monthly fixed expenses are $12,600. What is PB&J Eatery's operating leverage factor at the target level of operating income? Round answer to one decimal place. Answer:Determine the percentage increase in annual operating income if Pharoah Corporation increases its selling price by 20% and all other factors (including demand) remain constant. ( Round answer to 2 decimal places, e.g. 15.25% .) Percent increase in profit %

