Profitability Analysis Kolby Enterprises reports the following information on its income statement: Net sales $250,000 Administrative expenses $40,000 Cost of goods sold Selling expenses 75,000 35,000 170,000 Other income 70,000 Other expense Required Calculate Kolby's gross profit percentage and return on sales ratio. Kolby is planning to add a new product and expects net sales to be $30,000 and cost of goods to be $25,000. No other income or expenses a expected to change. How will this affect Kolby's gross profit percentage and return on sales ratio? (Round all answers to 1 decimal place.) Gross Profit Percentage Return on Sales IF NEW PRODUCT IS MADE Gross Profit Percentage Return on Salor % x 0% x 0% x

Profitability Analysis Kolby Enterprises reports the following information on its income statement: Net sales $250,000 Administrative expenses $40,000 Cost of goods sold Selling expenses 75,000 35,000 170,000 Other income 70,000 Other expense Required Calculate Kolby's gross profit percentage and return on sales ratio. Kolby is planning to add a new product and expects net sales to be $30,000 and cost of goods to be $25,000. No other income or expenses a expected to change. How will this affect Kolby's gross profit percentage and return on sales ratio? (Round all answers to 1 decimal place.) Gross Profit Percentage Return on Sales IF NEW PRODUCT IS MADE Gross Profit Percentage Return on Salor % x 0% x 0% x

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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Applying Differential Analysis to Profitability Scenarios Assume that Company A and Company B sell a microwave popcorn popper for $20. Although the companies have different cost structures, both companies currently show a profit of $21,000 based on sales of 14,000 units as shown in the following financial statements for the month of June. Both companies hold no inventory and sell contractual orders in the month. For the Month of June Company A Company B Sales ($20) $280,000 $280,000 Variable cost of goods sold ($5.00, 7.50, Company A and B, respectively) 70,000 105,000 Variable selling and administrative costs ($2.00, $4.00, Company A and B, respectively) 28,000 56,000 Contribution margin 182,000 119,000 Fixed cost of goods sold 105,000 70,000 Fixed selling and administrative costs 56,000 28,000 Profits Before-Tax $21,000 $21,000 For each company, determine the impact on monthly profit using differential analysis for each of the following separate scenarios.1.…
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REQUIRED: How much is the company's overall income?
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calculate Alex‘s gross profit percentage and return on sales ratio. (Round answer to one decimal place)