MBI Inc. had sales of $41 million for fiscal 2019. The company's gross profit ratio for that year was 22%. Required: a. Calculate the gross profit and cost of goods sold for MBI for fiscal 2019. (Enter your answers in millions rounded to 2 decimal places. (i.e., 5,500,000 should be entered as 5.50)) Gross profit Cost of goods sold million million b. Assume that a new product is developed and that it will cost $480 to manufacture. Calculate the selling price that must be set for this new product if its gross profit ratio is to be the same as the average achieved for all products for fiscal 2019. (Do not round intermediate calculations. Enter your answer in dollars rounded to 2 decimal places.) Selling price
MBI Inc. had sales of $41 million for fiscal 2019. The company's gross profit ratio for that year was 22%. Required: a. Calculate the gross profit and cost of goods sold for MBI for fiscal 2019. (Enter your answers in millions rounded to 2 decimal places. (i.e., 5,500,000 should be entered as 5.50)) Gross profit Cost of goods sold million million b. Assume that a new product is developed and that it will cost $480 to manufacture. Calculate the selling price that must be set for this new product if its gross profit ratio is to be the same as the average achieved for all products for fiscal 2019. (Do not round intermediate calculations. Enter your answer in dollars rounded to 2 decimal places.) Selling price
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vikrambahi
Transcribed Image Text:MBI Inc. had sales of $41 million for fiscal 2019. The company's gross profit ratio for that year was 22%.
Required:
a. Calculate the gross profit and cost of goods sold for MBI for fiscal 2019. (Enter your answers in millions rounded to 2 decimal
places. (i.e., 5,500,000 should be entered as 5.50))
Gross profit
Cost of goods sold
million
million
b. Assume that a new product is developed and that it will cost $480 to manufacture. Calculate the selling price that must be set for
this new product if its gross profit ratio is to be the same as the average achieved for all products for fiscal 2019. (Do not round
intermediate calculations. Enter your answer in dollars rounded to 2 decimal places.)
Selling price
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