How much operating income will the company generate this year if it uses a 50% markup on total cost, while still expecting a 30% increase in volume? If the company's asset base is $1,749,000, what is the ROI earned under this scenario? (Round ROI to 2 decimal places, e.g. 15.25%.) Operating income ROI $ % Nash Inc. is the only player in the classy snow shovel market. The variety of shovel designs includes camouflage (both green and pink, of course), snowman, beach, and northern lights. Nash purchases basic aluminum snow shovels from a supplier, applies its durable designs, and sells the shovels for $30 each. Last year, the company generated $58,000 in operating income, based on the following details. Sales volume in units Operating expenses DM cost per unit DL cost per unit Variable-MOH per unit Fixed-MOH per unit 10,300 $85,000 $8.00 $3.00 $5.00 $2.00 This year, the company realizes that its operating expenses will increase by $16,000 and its direct labor costs will increase by 20% per unit.

How much operating income will the company generate this year if it uses a 50% markup on total cost, while still expecting a 30% increase in volume? If the company's asset base is $1,749,000, what is the ROI earned under this scenario? (Round ROI to 2 decimal places, e.g. 15.25%.) Operating income ROI $ % Nash Inc. is the only player in the classy snow shovel market. The variety of shovel designs includes camouflage (both green and pink, of course), snowman, beach, and northern lights. Nash purchases basic aluminum snow shovels from a supplier, applies its durable designs, and sells the shovels for $30 each. Last year, the company generated $58,000 in operating income, based on the following details. Sales volume in units Operating expenses DM cost per unit DL cost per unit Variable-MOH per unit Fixed-MOH per unit 10,300 $85,000 $8.00 $3.00 $5.00 $2.00 This year, the company realizes that its operating expenses will increase by $16,000 and its direct labor costs will increase by 20% per unit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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