Calculate the gross profit and the gross profit ratio for the year on these accounting question Summit Technologies had net sales for the year of$2,000,000, and the cost of goods sold was $1,400,000 for itsexisting products. A new product is under development andwill have an expected selling price of no more than $85 perunit to remain competitive with similar products in themarketplace.Calculate the gross profit and the gross profit ratio for theyear.

Step 1: Define Gross ProfitGross Profit is the difference between Net Sales (Revenue) and the Cost…

Answered: Summit Technologies had net sales for…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter12: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 2STP

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MBI Incorporated had sales of $35 million for fiscal 2022. The company's gross profit ratio for that year was 26%. Required: a. Calculate the gross profit and cost of goods sold for MBI for fiscal 2022. b. Assume that a new product is developed and that it will cost $469 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 2022. c. From a management viewpoint, it could use the estimated selling price as a "target" in conducting marketing research studies to assess its ultimate prospects for success at this price. Complete this question by entering your answers in the tabs below. Required A Required B Required C From a management viewpoint, it could use the estimated selling price as a "target" in conducting marketing research studies to assess its ultimate prospects for success at this price.
Net sales for the year were $2,790,000 and cost of goods sold was $2,050,000 for the company's existing products. A new product is presently under development and will have an expected selling price of not more than $74 per unit in order to remain competitive with similar products in the marketplace. Calculate gross profit and the gross profit ratio for the year. Solve this
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Calculate gross profit, cost of goods sold, and selling price MBI Inc, had sales of $900 million for fiscal 2022. The company’s gross profit ratio for that year was 37.5%.Required:Calculate the gross profit and cost of goods sold for MBI for fiscal 2022.Assume that a new product is developed and that it will cost $1,625 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 2022.From a management viewpoint, what would you do with this information?
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Net sales for the year were $1,100,000 and cost of goods sold was $796,000 for the company's existing products. A new product is presently under development and will have an expected selling price of not more than $73 per unit in order to remain competitive with similar products in the marketplace. Calculate gross profit and the gross profit ratio for the year.
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A product is currently reported on the balance sheet at a cost of $29. The selling price of the product is currently $30 and disposal costs are $3. If the company had to buy the product today, it would pay $28. The product has a normal profit margin on sales of 30%. What amount should the product be valued at under each of the following methods? Lower of Cost or Market (LCM) Lower of Cost of Net Realizable Value (LCNRV)
Your company has sales of $97,200 this year and cost of goods sold of $71,200. You forecast sales to increase to $113,100 next year. Using the percent of sales method, forecast next year's cost of goods sold.
What is the pro forma net income expected to be? On these general accounting question
If the current market price for selling a product at Andrew Materials is $15.50 per unit, and the company wishes to make a 12% profit, what is the target cost? Accounting question
What is the pro forma net income expected to be ?

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