Sales IncreaseMaggie's Muffins Bakery generated $2 million in sales during 2018, and its year-end total assets were $1.3 million. Also, at year-end 2018, current liabilities were $1 million,consisting of $300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals. Looking ahead to 2019, the company estimates that its assets must increase atthe same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 6%, and its payout ratio will be 50%. How large a sales increase camthe company achieve without having to raise funds externally-that is, what is its self-supporting growth rate? Do not round intermediate calculations. Round the monetary value tothe nearest dollar and percentage value to the nearest whole number.Sales can increase by $that is by

Self Supporting Growth Rate:The highest growth rate that a business may attain without depending on…

Answered: Sales can increase by $ that is by

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Sales can increase by $ that is by

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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What is the break-even point in sales dollars? Break-even point $
2. Conceptual Connection: Compute net profit margin for ERS. Round your answer to one decimal place. 6.6 % A If ERS is able to increase its service revenue by $100,000, what should be the effect on future income? If ERS had an incremental increase in revenue of $100,000, based on the net profit margin computed, what is the additional potential profit? 3. Conceptual Connection: Assume that ERS net profit margin was 8.5% for 2018. As an investor, what conclusions might you draw about ERS' future profitability? A declining profit margin implies that ERS is having difficulty maintaining control over its expenses.
From the following data, calculate: Fixed Expenses OMR 12000. Break-Even point OMR 20000. (a) P I V Ratio. (b) Profit when sales are OMR 80000 & V.C is OMR 18000. (Variable cost per unit OMR 36) (c) New break-even point if selling price is increased by 20%.
When sales volume is rising do companies with a larger percentage of variable expenses or companies with a larger percentage of fixed expenses experience a larger percentage increase in profit? Explain your reasoning.
Find the missing values in the table below with different amount of sales and change in variable expense accordingly. From the given below data find the Contribution ratio. What will be impact on Breakeven if sales increases. Items Current Sales in additional sales in Percentage dollars for 600 dollars with 720 of Sales units units Sales 1,54,000 1,76,000 ? Variable 36,000 10 percent increase ? Expenses in previous expense Contribution ? Margin Fixed Expenses 25,000 25000 Net Income or ? ? ? Los b) Harsha Ltd. Corporation wants to know about the variance in production cost it is noted that mostly variance is related to labor variance. Actual labor hours consumed are 28 hours at the rate of 12 dollars per hour. While standard hours was 41 hours with standard rate of 20 per hour. You are required to find the Labor Efficiency Variance, Labor rate Variance. Interpret your results.
more, the cost drops to $70 per unit Should KIA take advantage of the quantity discount?
Suppose that the profit (in dollars) from the sale of Kisses and Kreams is given by P(x, y) = 10x + 6.9y-0.001x²-0.045y² where x is the number of pounds of Kisses and y is the number of pounds of Kreams. Find P/ay, and give the approximate rate of change of profit with respect to the number of pounds of Kreams that are sold if 100 pounds of Kisses and 14 pounds of Kreams are currently being sold. (Give an exact answer. Do not round.) What does this mean? If the number of pounds of Kisses is held constant and the number of pounds of Kreams is increased from 14 to 15, the profit will increase by approximately $ Need Help? Read It Watch it
(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
(7) On the breakeven graph, the fixed cost line a) moves to the right as fixed cost increase. b) decreases with sales volume. c) increases with sales volume. d) remains the same regardless of sales volume.
1.) what is the break-even in dollar sales? 2.) what is the margin of safety percentage? 3.) what is the degree of operating leverage ? (Round your answer to 2 decimal places.) 4.) using the degree of operating leverage and without changing anything, calculate the percentage change in net operating income if unit sales increase by 20% ?
(b) What is Blossom's monthly breakeven point in units? Breakeven point (c) eTextbook and Media Save for Later What is Blossom's contribution margin ratio? Contribution margin ratio (d) eTextbook and Media Save for Later What is Blossom's monthly breakeven point in sales dollars? Breakeven sales $ eTextbook and Media Save for Later cakes % Att Attempt

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