can you help me with The Shirt Factory sells dress shirts. Currently, it sells 18,000 shirts annually atan average price of $90 each. It is considering adding a lower-priced line ofshirts that sell for $60 each. The firm estimates it can sell 7,000 of the lower-priced shirts but will sell 2,500 less of the higher-priced shirts by doing so.What is the amount of the sales that should be used when evaluating theaddition of the lower-priced shirts?A. $146,000B. $190,500C. $195,000D. $420,000E. $1,815,000

Option a: This option is incorrect because it comprises a different calculation Option b: This…

Answered: The Shirt Factory sells dress shirts.…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 2PB: Mortech makes digital cameras for drones. Their basic digital camera uses $80 in variable costs and...

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How much will the total revenue change if the new product line is introduced ? Please solve this question
The shirt factory sells dress shirts please solve this question ❓
Sparkle, Inc., sells customized accessories. Currently, it sells 10, 000 sparkly phone cases annually at an average price of $55 a case. It is considering adding a lower -priced (less sparkly) line of phone cases, which sell for $29 a pair. Sparkle, Inc., estimates it can sell 5,000 of the lower-priced cases but will sell 1,000 less of the higher-priced cases by doing so. What is the dollar amount of sales that should be used when evaluating the addition of the lower-priced phone cases?
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A clothing company has determined that if the price of a T-shirt is K40, then 150 will be demanded by T-shirt wearers. When the price is K45, then 100 T-shirts are demanded by T- shirts wearers.(a) Find the price-demand equation, assuming that it is linear.(b) Find the revenue function.(c) Find the number of items sold that will give the maximum revenue. What is the maximum revenue?(d) What is the price of each item when maximum revenue is achieved?
Sweet Tastings is considering increasing its selling price to $13 per case. Assuming production and sales decrease by 10%, calculate Sweet Tastings’ return on investment. Is increasing the selling price a good idea?
Question: The Savannah Shirt Company is considering adding a new product line, a cloth shopping bag with custom screen printing that will be sold to grocery stores. If the current market price of cloth shopping bags is $1.25 and the company desires a net profit of 40%, what is the target cost? The company estimates the full product cost of the cloth bags will be $0.60. Should the company manufacture the cloth bags? Why or why not?
Columbus Inc. sells a high end hair dryer in a super competitive marketplace. As a result, market research and competitive pressures influence the determination of their selling price. Their marketing department has done a comprehensive analysis and It looks like a price of $57 would be appropriate given the present business environment. The company has a goal of earning $28 on each unit. What is the target unit cost of each hair dryer? Enter your answers without dollar signs or commas.
Hello tutor please provide this question solution general accounting
A beauty product company is developing a new fragrance named Happy Forever. There is a probability of 0.46 that consumers will love Happy Forever, and in this case, annual sales will be 1.03 million bottles; a probability of 0.36 that consumers will find the smell acceptable and annual sales will be 227,000 bottles; and a probability of 0.18 that consumers will find the smell unpleasant and annual sales will be only 52,000 bottles. The selling price is $37, and the variable cost is $9 per bottle. Fixed production costs will be $1.05 million per year, and depreciation will be $1.17 million. Assume that the marginal tax rate is 27 percent. What are the expected annual incremental after-tax free cash flows from the new fragrance? (Round answer to O decimal places, e.g. 5,275.) Annual incremental cash flows
A beauty product company is developing a new fragrance named Happy Forever. There is a probability of 0.51 that consumers will love Happy Forever, and in this case, annual sales will be 1.09 million bottles; a probability of 0.39 that consumers will find the smell acceptable and annual sales will be 193,000 bottles; and a probability of 0.10 that consumers will find the smell unpleasant and annual sales will be only 45,000 bottles. The selling price is $36, and the variable cost is $11 per bottle. Fixed production costs will be $1.00 million per year, and depreciation will be $1.21 million. Assume that the marginal tax rate is 40 percent. What are the expected annual incremental after-tax free cash flows from the new fragrance? - Annual increment cash flows?

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