Please I want to learn how to make these problems with a good explanation. One of those there is the possible answer.I need only question 13Thank you Trenton Company is a small but growing manufacturer of telecommunications equipment. Their manufacturing overneadCosts are all fixed. The cost structure of all expenses are inflexible, except sales force cost. The company has no salesforce of its own at the moment; it relies completely on independent sales agents to market its products. The sales agentsare compensated as follows:Commission rate20% of salesTotal fixed marketing expense2$260Jane Petersen, Trenton's controller, has just prepared the company's budgeted income statement for 2021 underthe current plan for salesforce. She also made some notes. The statement follows:Trenton CompanyBudgeted Income StatementFor 2021NotesSales$ 20,200100%Direct materials2,02010%Direct labor3,0302,94015%Fixed manufacturing overheadMarketing expenseNet operating income (before tax)4,30020%+$260$47,91013Trenton is considering starting its own marketing department. The sales people will receive a 10% commission with afixed salary of $2460. Is this a good idea? What is the impact on their net operating income, if everything else stays thesame.A. It is a good idea because their NOI will increase by $30.B. It is a good idea because their NOI will increase by $100.C. It is a bad idea because their NOI will decrease by $180.D. It is a bad idea because their NOI will decrease by $50.E. None of the above14 Trenton would like to increase their income, in particular their after-tax income. Assume that they are still usingindependent sales agents.Tax rate30%Desired after-tax income$ 7,000How much more revenue does Trenton have to generate to achieve the desired after-tax income?А.$1,902В.$43,800С.%245,537D.242,090E. None of the above

Sales 20200 Less:- direct materials 2020 Direct labor 3030 Fixed manufacturing overhead…

Answered: What is the impact on their net…

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What is the impact on their net operating income, if everything

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

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Sleepy Time is a retailer of luxury bed frames located in Los Angeles, California. Due to a recent industry-wide financial crisis, the CFO of Sleepy Time fears a significant drop in the firm's upcoming income stream. The CFO asked you to use the company financial information provided below. Sales price per unit $ 3,250.00 Per-unit variable costs: Invoice cost 2,468.80 Sales commissions 331.20 Total per-unit variable costs $ 2,800.00 Total annual fixed costs: Advertising $ 236,500 Rent 178,500 Salaries 386,500 Total annual fixed costs $ 801,500 If 4,250 bed frames were sold, Sleepy Time's operating income (πB) would be: (Do not round intermediate calculations.)
Megaphone Corporation produces a molded plastic casing, M&M101, for many cell phones currently on the market. Summary data from its 2017 income statement are as follows:Revenues $5,000,000 Variable costs 3,250,000 Fixed costs 1,890,000 Operating income $ (140,000) Joshua Kirby, Megaphone’s president, is very concerned about Megaphone Corporation’s poor profitability. He asks Leroy Gibbs, production manager, and Tony DiNunzo, controller, to see if there are ways to reduce costs. After 2 weeks, Leroy returns with a proposal to reduce variable costs to 55% of revenues by reducing the costs Megaphone currently incurs for safe disposal of wasted plastic. Tony is concerned that this would expose the company to potential environmental liabilities. He tells Leroy, “We would need to estimate some of these potential environmental costs and include them in…
Megaphone Corporation produces a molded plastic casing, M&M101, for many cell phones currently on the market. Summary data from its 2017 income statement are as follows:Revenues $5,000,000 Variable costs 3,250,000 Fixed costs 1,890,000 Operating income $ (140,000) Joshua Kirby, Megaphone’s president, is very concerned about Megaphone Corporation’s poor profitability. He asks Leroy Gibbs, production manager, and Tony DiNunzo, controller, to see if there are ways to reduce costs. After 2 weeks, Leroy returns with a proposal to reduce variable costs to 55% of revenues by reducing the costs Megaphone currently incurs for safe disposal of wasted plastic. Tony is concerned that this would expose the company to potential environmental liabilities. He tells Leroy, “We would need to estimate some of these potential environmental costs and include them in…
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Benson Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Benson produces and sells only 7,400 bikes each year. Due to the low volume of activity, Benson is unable to obtain the economies of scale that larger producers achieve. For example, Benson could buy the handlebars for $29 each; they cost $32 each to make. The following is a detailed breakdown of current production costs. Item Unit-level costs Unit Cost Total Materials Labor Overhead $ 13 9 $ 96,200 66,600 Allocated facility-level costs Total 2 8 14,800 59,200 $ 32 $ 236,800 After seeing these figures, Benson's president remarked that it would be foolish for the company to continue to produce the handlebars at $32 each when it can buy them for $29 each. Required Calculate the total relevant cost. Do you agree with the president's conclusion? Per Unit Total Total relevant cost Do you agree with the president's conclusion? No I
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Adams Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Adams produces and sells only 6,200 bikes each year. Due to the low volume of activity, Adams is unable to obtain the economies of scale that larger producers achieve. For example, Adams could buy the handlebars for $30 each; they cost $33 each to make. The following is a detailed breakdown of current production costs. Item Unit-level costs Materials Labor Overhead Allocated facility-level costs Total Unit Cost $15 9 2 7 $33 Total $ 93,000 55,800 12,400 43,400 $204,600 After seeing these figures, Adams's president remarked that it would be foolish for the company to continue to produce the handlebars at $33 each when it can buy them for $30 each. Required Calculate the total relevant cost. Do you agree with the president's conclusion? Answer is complete but not entirely correct. Per Unit Total

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