If the sales volume is estimated to increase by 600 tonnes for next year, and if the selling price and cost behaviour patterns remain the same next year, how much net income does Feed 'N Grow expect to earn next year? Show all your calculations.
Q: Finally, assume that the new product line isexpected to decrease sales of the firm’s otherlines by…
A: Incremental cash flow is the additional cash flow that occurs when a company starts a new project.
Q: Explain the concept of dollar cost averaging and its effect on potential returns provided there's a…
A: Investment is basically done by the investors with a hope of appreciation in their principal…
Q: You see an estimate that hourly wage rates will increase by 6 percent next year. What other…
A: An Operating Profit Margin seems to be an estimate about just how much money a firm will have…
Q: What is the value of an investment opportunity that will pay GH¢5,060 next year, GH¢5,500 the year…
A: Present value is a current value of future cash flow at specified rate of interest. It helps in…
Q: If that 55% return on investment (ROI) occurs over a decade, r = .55 and n = 10, so the annualized…
A: Return on investment is defined as the return generated by investment as a percentage of investment.…
Q: Your business partner has just presented to you a summary of projected costs and annual receipts for…
A: IRR is the rate of return a project generates through its lifetime expressed in annual terms. It is…
Q: Suppose Naboo Manufacturing's sales increase 20% over the next year. Assuming that all asset…
A: Taxes Taxes are the amounts that defines the obligation of the taxpayers to pay tax over the income…
Q: sent worth of income from an investment that follows an arithmetic gradient was projected to be P…
A: Gradient mean that there is constant growth of annuity by the fixed interval and in this we need to…
Q: Suppose Naboo Manufacturing's sales increase 20% over the next year. Assuming that all asset…
A: Cash 10000
Q: Use the ERR method to evaluate the economic worth of the diagram shown below. The value of the…
A: The external rate of return is the measure of the profitability of an investment generating profits…
Q: Plant Design is a major requirement for you to be able to graduate BS ChE in Batangas State…
A: The payback period is the duration of time it takes to recover the cost of an investment or the…
Q: Suppose you have a project that has a .7 chance of doubling your investment in a year and a .3…
A: According to the information given, P1 = 0.7 (probability of doubling the investment) R1=100%…
Q: A company that manufactures magnetic flow meters expects to undertake a project that will have the…
A:
Q: You are upgrading to better production equipment for your firm's only product. The new equipment…
A: To calculate for the incremental revenue Step 1 : Compute for the incremental unit soldIncremental…
Q: Suppose you own a business and you expect to generate a profit of $50,000 next year. Each year after…
A: The present value of the company's valuation is the present value of all cash flows that are…
Q: Answer the following lettered questions on the basis of the information in this table: Amount of…
A: Since more than one question is asked at a time the answer for first question is provided as per…
Q: Your company forecasts that next year's sales will be $59.00 million, Cost of Goods Sold (COGS) will…
A: Accounts payables are calculated by multiplying days payables outstanding with the cost of goods…
Q: Your boss has just presented you with the summary in the accompanying table of projected costs and…
A: IRR is the annual rate of growth that an investment is expected to generate. IRR is calculated using…
Q: You are upgrading to better production equipment for your firm's only product. The new equipment…
A: Incremental revenue is the amount of revenue earned from the units sold over and above the current…
Q: , what production capacity will Kappa require each year? When will and expansion be necessary?
A: Production capacity Kappa require each year shall be equal to Market share of Kappa.
Q: You have found an investment opportunity that will provide annual cash flows of $1,234 for 5 years…
A: Here, Cost is $6789 Annual Cash Flows is $1234 Time Period is 5 years Required Return is 12%
Q: In this exercise, we develop a model for the growth rate G, in thousands of dollars per year, in…
A: We have to use the conditions and the example given in the problem to answer the question.
Q: Assume that next year, management wants the company to earn a minimum profit of $ 500,000. How many…
A: Desired Sales - Desired Sales (in Units) is the sales required to be made by the company to earned a…
Q: The present worth of income from an investment that follows an arithmetic gradient is projected to…
A: The cash flows occurring in consecutive interest periods may not be of the same amount but they…
Q: The demand for a product during the next ten years will be such that revenues will be $100,000 the…
A:
Q: You are given the dollar value of a product in 2016 and the rate at which the value of the product…
A: Given, 2016 Value =$5000 Rate= $170 decrease per year Let 2000 be the initial year ,t=0
Q: You are upgrading to better production equipment for your firm's only product. The new equipment…
A: Incremental revenue is the amount of revenue earned from the units sold over next year over and…
Q: Mirabel Manufacturing Budgeted Income Statement For the Year Ending December 31 $ Sales 36,750,000…
A: SOLUTION- INCOME STATEMENT- IT IS ONE OF THE FINANCIAL REPORTS OF THE COMPANY PROVIDING A SUMMARY OF…
Q: 3. Suppose your company expects to increase unit sales of widgets by 15% per year for the next 5…
A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…
Step by step
Solved in 5 steps with 8 images
- Easton Company makes and sells scooters. Easton incurred the following costs in its most recent fiscal year: Cost Items Appearing on the Income Statement Materials cost ($10 per unit) Company president's salary Depreciation on manufacturing equipment Salaries of administrative personnel Labor cost ($4 per unit) Advertising costs (150,000 per year) Shipping and handling ($500 per year) Research and development costs Real estate taxes on factory Inspection costs Easton can currently purchase the scooters it makes from Weston Company. If the company purchases the scooters, Easton would still continue to use its own logo, sales staff, and advertising programs. If Easton outsources the scooters to Weston, which of the following costs would be relevant to the outsourcing decision? Multiple Choice X Materials cost Shipping and handling Inspection costs All of these answers are correct.Rowe Tool and Die (RTD) produces metal fittings as a supplier to various manufacturing firms in the area. The following is the forecasted income statement for the next quarter, which is the typical planning horizon used at RTD. RTD expects to sell 61,000 units during the quarter. RTD carries no inventories. Sales revenue Costs of fitting produced Gross profit Administrative costs Operating profit Required A Fixed costs included in this income statement are $396,500 for depreciation on plant and machinery and miscellaneous factory operations and $102,500 for administrative costs. RTD has received a request for 10,000 fittings to be produced in the next quarter from Endicott Manufacturing. Endicott has never purchased from RTD, although they have been a local company for many years. Endicott has offered to pay $21.60 per unit. RTD can easily produce the 10,000 units with its existing capacity. Production of the 10,000 units will incur all variable manufacturing costs but no fixed…Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $ 330,000 Fixed selling and administrative $ 240,000 During the year, the company produced 30,000 units and sold 23,000 units. The selling price of the company's product is $43 per unit. Prepare an income statement for the year. Assume that the company uses variable costing Lynch Company Variable Costing Income Statement Sales Variable expenses: Variable cost of goods sold Variable selling and administrative expense Contribution margin $ 11 $3 $1 $1 Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative Net operating income $ $ 989,000 0 989,000 0 989,000
- Blazer Chemical produces and sells an ice-melting granular used on roadways and sidewalks in winter. It annually produces and sells 25,125 tons of its granular. Because of this year's mild winter, projected demand for its product is only 20.100 tons. Based on projected production and sales of 20.100 tons, the company estimates the following income using absorption costing. Sales (20,100 tons at $148 per ton) Cost of goods sald (20,100 tons at 360 per ton) Gross profit Selling and administrative expenses Income Its product cost per ton follows and consists mainly of fixed overhead because its automated production process uses expensive equipment Direct materials Direct labor Variable overhead Fixed overhead ($884,098/28,100 tons) Selling and administrative expenses consist of variable selling and administrative expenses of $6 per ton and fixed selling and administrative expenses of $213,400 per year. The company's president will not earn a bonus unless a positive income is reported. The…Gorman Nurseries Inc. grows poinsettias and fruit trees in a green house/nursery operation. The following information was provided for the coming year. Poinsettias Fruit Trees Sales $970,000 $3,100,000 Variable cost of goods sold 460,000 1,630,000 Direct fixed overhead 160,000 200,000 A sales commission of 4% of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $146,000 for the poinsettia line and $87,000 for the fruit tree line. Common fixed overhead for the nursery operation was estimated to be $800,000; common selling and administrative expense was estimated to be $450,000. Required: Prepare a segmented income statement for Gorman Nurseries for the coming year, using variable costing. Note: Enter all amounts as positive numbers except operating loss, if applicable.applies to the questions displayed below.] Diego Company manufactures one product that is sold for $75 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 46,000 units and sold 42,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense Profit will The company sold 31,000 units in the East region and 11,000 units in the West region. It determined that $200,000 of its fixed selling and administrative expense is traceable to the West region, $150,000 is traceable to the East region, and the remaining $38,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. 14.…
- Sardi Inc. is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 13,100 of the components each year. The unit product cost of the component according to the company's cost accounting system is given as follows: Direct materials $ 8.90 Direct labor 5.90 Variable manufacturing overhead 1.70 Fixed manufacturing overhead 3.70 Unit product cost $ 20.20 Assume that direct labor is a variable cost. Of the fixed manufacturing overhead, 20% is avoidable if the component were bought from the outside supplier. In addition, making the component uses 2 minutes on the machine that is the company's current constraint. If the component were bought, time would be freed up for use on another product that requires 4 minutes on this machine and that has a contribution margin of $5.30 per unit. When deciding whether to make or buy the component, what cost of making the component should be compared to the…Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows: Category Per Unit Dollar Amount Price $60,000 Cost of goods sold Gross profit 28,000 32,000 In addition, the company incurs selling and administrative expenses of $226,250. The company wishes to assign these costs to its three major customers, Gough Industries, Breen Inc., and The Martin Group. These expenses are related to three major nonmanufacturing activities: customer service, project bidding, and engineering support. The engineering support is in the form of engineering changes that are placed by the customer to change the design of a product. The budgeted activity costs and activity bases associated with these activities are: Budgeted Activity Cost Activity Base $51,500 Number of service requests Activity Customer service Project bidding Engineering support 64,000 Number of bids 110,500 Number of customer design changes Total costs 226,000…Sparn Limited incurs the following costs to produce and sell a single product Varinble costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative expenses Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses O Absorption costing O Variable costing During the last year, 44,300 units were produced and 28,100 units were sold. The Finished Goods Inventory account at the end of the year shows a balance of $145.800 for the 5,400 unsold units. 1-b. Show computations to support your answer. Required: 1-a. Is the company using absorption costing or variable costing to cost units in the Finished Goods Inventory account? Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Total cost. 5,400 units $ A 15 7 4 6 Variable Absorption Costing Costing 265,800 421,500
- es Blazer Chemical produces and sells an ice-melting granular used on roadways and sidewalks in winter. It annually produces and sells 21,125 tons of its granular. Because of this year's mild winter, projected demand for its product is only 16,900 tons. Based on projected production and sales of 16,900 tons, the company estimates the following income using absorption costing. Sales (16,900 tons at $80 per ton) $ 1,352,000 Cost of goods sold (16,900 tons at $60 per 1,014,000 ton) Gross profit Selling and administrative expenses Income 338,000 338,000 $ 0 Its product cost per ton follows and consists mainly of fixed overhead because its automated production process uses expensive equipment. Direct materials Direct labor Variable overhead Fixed overhead ($676,000/16,900 tons) $ 13 per ton $ 4 per ton $ 3 per ton $ 40 per ton Selling and administrative expenses consist of variable selling and administrative expenses of $6 per ton and fixed selling and administrative expenses of $236,600…Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Selling price per unit Variable expenses per unit Traceable fixed expenses per year $ $ $ 133,000 Greengrow $ $ $ 44,000 8.00 34.00 2.40 13.00 Common fixed expenses in the company total $95,000 annually. Last year the company produced and sold 37,000 units of Weedban and 16,000 units of Greengrow. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Company Weedban GreengrowBlazer Chemical produces and sells an ice-melting granular used on roadways and sidewalks in winter. It annually produces and sells 21,750 tons of its granular. Because of this year's mild winter, projected demand for its product is only 17,400 tons. Based on projected production and sales of 17,400 tons, the company estimates the following income using absorption costing. Sales (17,400 tons at $112 per ton) Cost of goods sold (17,400 tons at $60 per ton) Gross profit Selling and administrative expenses Income Its product cost per ton follows and consists mainly of fixed overhead because its automated production process uses expensive equipment. Direct materials Direct labor $ 1,360,000 1,044,000 316,000 316,000 $0 Variable overhead. Fixed overhead ($696,000/17,400 tons) $ 13 per ton $ 4 per ton $ 3 per ton $40 per ton Selling and administrative expenses consist of variable selling and administrative expenses of $6 per ton and fixed selling and administrative expenses of $211,600 per…