Net sales for the year were $500,000 and cost of goods sold was $295,000 for the company's existing products. A new product is presently under development and has an expected selling price of not more than $57 per unit in order to remain competitive with similar products in the marketplace. Required: a. Calculate gross profit and the gross profit ratio for the year. Net sales Cost of goods sold Gross profit b. What is the maximum cost per unit that can be incurred to manufacture the new product so that the product can be priced competitively and will not result in a reduction to the company's gross profit ratio? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Q: OCF analysis

A: Operating Cashflow Analysis  = Net Income + Depreciation and Amortization- Net Working capital

Q: Define value of operations, Vop

A: Definition: The Present Value of all future free cash flows which are discounted at the Weighted…

Q: Prev

A: The Loan provided to friends is clearly a “Non-Business” loan and so it is to be treated as…

Q: explain the the benifts of IFRS9

A: The international financial reporting standard 9 is generally specifying how a particular…

Q: Read and interpret anincome statement.

A: It shows the income generated by the company.

Q: AS36

A: The core principle in IAS 36 is that an asset must not be carried in the financial statements at…

Q: Describe WACC and its components.

A: WACC: The weighted average cost of capital (WACC) is a computation of   cost of capitalof a company…

Q: Define NRV method.

A: Definition:   Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare…

Q: hat is APY

A: In interest there is compounding and other is simple interest. In the compouding there is interest…

Q: What is ESOP?

A: It is abbreviated as Employee Stock Ownership Plan is defined as a plan that gives the workers a…

Q: Whispering plc had income from continuing operations of £ 13,780,000 in 2022. During 2022, it…

A: SOLUTION- NET INCOME IS ALSO CALLED NET EARNINGS , IS SALES MINUS COST OF GOOD SOLD , GENERAL…

Q: lanagemenl A ler

A: The right answer is option a. cost centre

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A: Mowgli, the human cub found by the wolves in 'The Jungle Book', is described as a very small and…

Q: Define Hedging.

A: Hedging is the transfer of risk from a risky financial instrument to another instrument by buying or…

Q: Define agent

A: Introduction: An agent is a party that has oral or written authority to perform for another…

Q: Describe about the NOL.

A: NOL means Net Operating Loss. This is a situation when company's deductions are more than it's…

Q: answer pls..

A: Step 1:Dear you haven't clearly mentioned what to answer.Kindly try re-uploading the question.As no…

Q: Hsheue ssjdkd didis

A: Hope it helps :)

Q: Duing July Year 6 W Mandrake. Bought further goods on credit for $ 700 Paid payable $ 400 by cheque…

A: Statement of financial means the balance sheet where all the real and personal account are show.…

Q: what about quesitons E and F?

A: Work in progress (WIP) also called work in process, is inventory that has begun the manufacturing…

Q: Define Profi t and loss (P&L) statement

A: Introduction: The financial statement is a detailed analysis of the financial situation of the…

Q: Concept of Reconcilation statement with an example .

A: A bank compromise proclamation is a synopsis of banking and business movement that accommodates an…

Q: Describe EVA.

A: EVA (Economic Value Added):

Q: Selected Stock Transactions The following selected accounts appear in the ledger of Parks…

A: The cash dividend is part of the corporation's current earnings or accumulated profits which is…

Q: Define transaction

A: A transaction is an instance of buying or selling something.

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.