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

See similar textbooks

Similar questions

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:
Margin of Safety Quick Inc. has sales of $36,400,000, and the break-even point in sales dollars is $24,024,000. Determine the company's margin of safety as a percent of current sales. Enter your answer as a whole number. %
Part 2. Bhiner Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units). Sales $25,000 Variable expenses 10.000 ontribution margin 15,000 +Fixed expenses 8.000 Net operating income $ 7.000 Required: (Answer each question independently and always refer to the original data unless instructed otherwise.) (Show all work/calculations. No credit will be given without
1. The peso sales that the division needs in order to reach the 30% ROI target is?
If net operating income is $80,000, average operating assets are $640,000, and the minimum required rate of return is 11%, what is the residual income? Multiple Choice $89,600 $60,800 $9,600 $70,400
Calculatedecimal. Please present answer to nearest half a month.the payback period for both products in years and months, not as a
For the most recent year, Robin Company reports operating income of $660,000. Robin's sales margin is 7%, and capital turnover is 2.0.What is Robin's return on investment (ROI)? Question 15 options: 2% 7% 4% 14%
Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $11,700,000 Total variable cost 8,190,000 Contribution margin $3,510,000 Total fixed cost 2,254,200 Operating income $1,255,800 Compute the new operating income (profit) if sales are 10% higher than expected.
Hong Kong Ltd has provided the following data for the current fiscal period: Sales 5,000 units Selling price £80 Variable cost per unit £55 Fixed cost £25,000 The company’s CEO believes that if the sales volume will remain constant next year, the contribution margin per unit can be increased by 20%, and total fixed cost can be reduced by 10%, in which case the operating profit will: a. Increase by £22,500 b. Decrease by £22,500 c. Decrease by £27,500 d. Increase by £27,500
Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How much will operating income change if sales increase by $40,000? a.$8,000 decrease b.$30,000 decrease c.$8,000 increase d.$30,000 increase
(20 pts) Given: Selling price $50/unit, total fixed expenses $95,000, variable expenses $40/unit. A) Find the BEP in Units and in Dollars. Assume the above variable expenses are reduced by 25% and the total fixed expenses are increased by 10%. B) Find the sales in units to achieve a profit of $30,000 assuming that the selling price stays the same. C) Find the net income if activity volume increases by 20%, assuming total sales are $32,000, variable expenses are $12,000, and fixed expenses are $20,000. (Unrelated to A&B)
If Sales for the last year was Rs. 40,00,000 and variable cost ratio is 80%. What will be the new contribution if the sales increase by 20%? Oa.10,50,000 O b. 9,60,000 O c. 9,20,000 O d. 8,00,000