Underwood Company's gross margin percentage increased from 40% to 45%. Which of the following is not a possible explanation for this increase, assumingall other things being equal?Multiple ChoiceUnderwood raised its per unit sales price.Underwood's supplier lowered its per unit price.Underwood sold more products.Underwood started taking advantage of purchase discounts.S€

The correct answer is:Underwood's supplier lowered its per unit price.Explanation:If Underwood's…

Answered: Underwood Company's gross margin…

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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ABC Company' management believes that every 9% increase in the selling price of one of the company's products results in a 10% decrease in the products total unit sales.The variable production cost of this product is 12.60 per unit and the variable selling and administrative cost is 4.90 per unit. The product's profit- maximizing price according to the formula in the text is closest to: a. 104.20 b. 19.11 c. 20.83 d. 96.12
(Use information attached) Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. Use the marginal income ratio to calculate the break-even value. Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expense by R100 000 is expected to increase sales by 400 units. How many units must be sold if the company wishes to earn a net profit of R298 920. Based on the expected sales volume of 2 400 units, determine the sales price per unit (expressedin rands and cents) that will enable the company to break even.
Please help with 7 through 10. Thank you!:)
Time left 0:25 Each of a company's two product lines has a different contribution margin ratio. If the company's total sales remain the same but the sales mix shifts toward selling more of the product with the lower contribution ratio, which of the following is false? a. the breakeven point will increase. b. operating income will increase. С. Fixed cost will be constant. d. all of the answers are true. e. the average contribution margin ratio will decrease. On the cost-volume-profit graph, the area between the total cost line and the sales line before the break even point represents: a. The variable cost amount b. The contribution margin per unit
Rancor Electronics sells 6,000 mp3 players and earns Tk.3.0 million in revenues. Rancor's variable costs are Tk.500,000 and its fixed operating costs are Tk.1.52 million. a. How many mp3 players does Rancor have to sell to recover all its operational costs? b. Can Rancor earn a larger increase in operating income by making a smaller increase in sales? Explain. c. Suppose Rancor has Tk.1.2 million in debts at a 12 percent rate of interest and is subject 38 percent tax rate. How many mp3 players will Rancor have to sell in order attain its financial breakeven point?
stion Company XYZ produces and sells two types of calculators: Basic and Scientific. The Basic has a lower selling price per unit compared to the Scientific. However, the Basic has a higher contribution margin compared to the Scientific. Due to fixed production capacity, the company has a cap on total production ability. If the company's CEO has decided to shift the sales mix towards producing more Scientific calculators. What red would be the effect on total profits? d out of O a. Total profits would increase g O b. Total profits would decrease on Oc. Total profits would remain the same O d. None of the given answers O e. Cannot be determined using the above information
I need the answers of 1-6.
Bha
Please help break it down. Thanks!
A higher gross margin implies ______________ . The company has huge market share The company has the flexibility to change its pricing policy The company sells goods at huge discounts The cost of goods sold remains same over the years
Both Apple and Google sell electronic devices, and each of these companies has a different product mix. Assume the following data are available for both companies. ($ millions) Sales Variable costs Fixed costs Apple $ 260,174 122,034 82,884 Required: 1. Compute income for each company. 2. Compute the degree of operating leverage for each company. 3. If unit sales decline, which company would experience the larger decline in income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Google $ 161,857 86,302 41,212 Income Compute income for each company. (Enter your answers in million of dollars.) Apple Google
Study the information given below and answer each of the following questions independently: Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. 3.1 Use the marginal income ratio to calculate the break-even value. Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expense by R100 000 is expected to increase sales by 400 units. 3.2 3.3 3.4 3.5 How many units must be sold if the company wishes to earn a net profit of R298 920. Based on the expected sales volume of 2 400 units, determine the sales price per unit (expressed in rands and cents) that will enable the company to break even. INFORMATION Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022: 1. 2. 3. 4. 5. Total production and sales Selling price per table Variable manufacturing costs per table: Direct material Direct labour Overheads Fixed manufacturing overheads Other costs: Fixed…

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