The company has Fixed cost of 500,000 and CMR of 30%. If the company projected that net loss of 50,000 will occur in 2020 due to pandemic; What is the projected sales in 2020?
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The company has Fixed cost of 500,000 and CMR of 30%. If the company projected that net loss of 50,000 will occur in 2020 due to pandemic; What is the projected sales in 2020?
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- The company has Fixed cost of 500,000 and CMR of 30%. If the company projected that net loss of 50,000 will occur in 2020 due to pandemic; What is the projected sales in 2020? • 450,000 • 1,200,000 • 1,500,000 • 2,000,000 • None of the aboveIn 2018, the company's sales was P 500,000. Its fixed costs amounted to P 100,000 per year. In 2019, sales was 20% higher, while profit was P 30,000 higher than the 2018 profit. For 2020, the company expects to have sales that is twice as much as the 2018 sales. The expected increase in production to meet the sales demand in 2020 will not require the company to exceed its normal capacity. a. What is the company's contribution margin ratio? b. How much profit does the company expect to eam in 2020?SERVICIOS EDUCATIVOS IMPRESOS S.A. wants to do a scenario analysis for the coming year (2022). The pessimistic prediction for sales is $900,000; the most likely amount of sales is $1,125,000; and the optimistic prediction is $1,280,000. The company's income statement for the most recent year is the following: SERVICIOS EDUCATIVOS IMPRESOS S.A. - Income Statement for the year ended December 2021 0 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Operating profits Less: Interest expense Net profits before taxes Less: Taxes (rate = 25%) Net profits after taxes $937,500 421,875 $515,625 234,375 $281,250 30,000 $251,250 62,813 $188,437 Use the percent-of-sales method, the income statement for December 31, 2021 and the sales revenue estimates to develop pessimistic • most likely • optimistic pro forma income statements for the coming year.
- Data are as follows: In year 2020, sales are 150,000 units with Selling price per unit of 10 and VC per unit iof 6.50 per unit. Fixed cost is 155,000 and Interest cost is 90,000. Q3. Assume that the company expects to have sales increase by 20%, what will be the resulting change in EBIT in year 2021? choices: • 33.33% • 26.45% • 25% • 28.38%Data are as follows: In year 2020, sales are 150,000 units with Selling price per unit of 10 and VC per unit iof 6.50 per unit. Fixed cost is 155,000 and Interest cost is 90,000. Q3. Assume that the company expects to have sales increase by 20%, what will be the resulting change in EBIT in year 2021? A• 25% B• 26.45% C• 33.33% D• 28.38%Data are as follows: In year 2020, sales are 150,000 units with Selling price per unit of 10 and VC per unit iof 6.50 per unit. Fixed cost is 155,000 and Interest cost is 90,000. Q3. Assume that the company expects to have sales increase by 20%, what will be the resulting change in EBIT in year 2021? • 28.38% • 26.45% • 25% • 33.33%
- Data are as follows: In year 2020, sales are 150,000 units with Selling price per unit of 10 and VC per unit iof 6.50 per unit. Fixed cost is 155,000 and Interest cost is 90,000. Q3. Assume that the company expects to have sales increase by 20%, what will be the resulting change in EBIT in year 2021?(2 Points) • 28.38% • 33.33% • 25% • 26.45%the average insurance company premium cost is $500 and its target loss ratio is 75%. If this company utilizes a technology that decreases losses by 40%, how much should the average premium cost be with this new technology?A small, US-based manufacturing firm is interested developing a new product to that would be produced andsold starting in 2022. Based on a preliminary market analysis, a demand forecast for the product (i.e., aprediction of the number of units sold each year) anticipates that 72,000 units can be sold the first year at aprice of $99.95 per unit. However, after that, sales are expected to decline each year according to a 95%learning curve.The required manufacturing process can produce 12 units of product per hour, up to a maximum of 72,000units per year. It would cost $4,000,000 to purchase and install the necessary manufacturing equipment,which would have a 10-year useful life. The equipment is expected to have little, if any, salvage value at theend of its useful life. While the equipment belongs to the 7-year MACRS property class, the firm willdepreciate the equipment using the most advantageous method allowed by US tax law.The manufacturing process requires the labor of a team of…
- JBL expects to sell 7,000 units of wireless earbuds this year at P7,199.00 each. What is the projected sales revenue? ROS Corporation sold 9,000 flashlight umbrellas in 2020. Their expected units to be sold this year is 10,000 units. What is the percentage change in sales volume?The management of Valencia Manufacturing Company is desirous of increasing operating incomeby 20% in 2019. They expect per unit data and total fixed costs to remain the same in 2018.Determine the number of units that must be sold to earn this target operating profit. Is this a realisticgoal?MEINE ON The table below gives a detailed forecast of the size of the market by production volume. Assume that KMS expects to capture 10.20% of the market share in 2019 and expects that percentage will increase by 0.27% per year. KMS currently has the capacity to produce a maximum of 1,100,000 units. What production capacity will KMS require each year? When will an expansion become necessary (that is, when will production volume exceed 1,100,000 units)? Year Production Volume (000 units) Market Size KMS's market share for 2019 is KMS's market share for 2021 is KMS's market share for 2022 is 2019 KMS's market share for 2023 is 10,412 11,570 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. KMS's market share for 2024 is 2020 10,000 units.…
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