REQUIREMENT 1:
To CALCULATE:
We need to calculate the profit of See Breeze Skin Cleanser after considering the Management decision on increasing in Selling Price and Decrease in volume.
REQUIREMENT 2:
To CALCULATE:
We need to calculate the Number of units to be sold to earn the earlier profit of $40,000 when there is an increase in price to $24.00 per unit sales.
Requirement 3:
To CALCULATE:
We need to calculate the % decrease in Unit sales that can be absorbed to provide the same profit of $40,000.
REQUIREMENT 4.A
To CALCULATE:
We need to calculate the Optimal selling Price using the Optimal Pricing Model as provided in the link given in the question.
REQUIREMENT 4.B
To CALCULATE:
We need to calculate the profit that company earned on such Optimal Price.
REQUIREMENT 4.C
To CALCULATE:
We need to calculate the Additional Profit that company has earned in Optimal Selling price as compared to selling price of $24.00.
REQUIREMENT 5.A
To CALCULATE:
We need to calculate the Optimal selling Price and Optimal Profit using the Optimal Pricing Model as provided in the link given in the question.
REQUIREMENT 5.B
To CALCULATE:
We need to find out which optimal price is higher as calculated in 4.a or 5.a and what the reason behind such is.
REQUIREMENT 5.C
To CALCULATE:
We need to recommend that if the unit sales decrease to 35%, would we retain the price at $20 or to go with the optimal pricing.
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Chapter 13 Solutions
MANAGERIAL ACCT(LL)+CONNECT+PROCTORIO PL
- Problem 19-13 (Algo) Shoney Video Concepts produces a line of video streaming servers that are linked to personal computers for storing movies. These devices have very fast access and large storage capacity. Shoney is trying to determine a production plan for the next 12 months. The main criterion for this plan is that the employment level is to be held constant over the period. Shoney is continuing in its R&D efforts to develop new applications and prefers not to cause any adverse feelings with the local workforce. For the same reason, all employees should put in full workweeks, even if that is not the lowest-cost alternative. The forecast for the next 12 months is MONTH FORECAST DEMAND January February March April 530 730 830 530 May June 330 230 July 130 August 130 September 230 October 630 730 800 November December Manufacturing cost is $210 per server, equally divided between materials and labor. Inventory storage cost is $4 per unit per month and is assigned based on the ending…arrow_forwardCompute 007s gross profit percentage and rate of inventory turnover for 2016arrow_forwardHeadland Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August. Because August is their vacation period, vacation pay is also listed. Earnings to Weekly Vacation Pay to Be Employee July 31 Pay Received in August Mark Hamill $5,180 $280 Karen Robbins 4,480 230 $460 Brent Kirk 3,680 190 380 Alec Guinness 8,380 330 Ken Sprouse 8,980 410 820 Assume that the federal income tax withheld is 10% of wages. Union dues withheld are 2% of wages. Vacations are taken the second and third weeks of August by Robbins, Kirk, and Sprouse. The state unemployment tax rate is 2.5% and the federal is 0.8%, both on a $7,000 maximum. The FICA rate is 7.65% on employee and employer on a maximum of $142,800 per employee. In addition, a 1.45% rate is charged both employer and employee for an employee's wages in excess of $142,800. Make the journal entries necessary for each of the four August payrolls. The entries for the payroll and for the…arrow_forward
- Subject. General accountingarrow_forwardCompute the assets turnover ratioarrow_forwardExercise 5-18 (Algo) Calculate receivables ratios (LO5-8) Below are amounts (in millions) from three companies' annual reports. WalCo TarMart Costbet Beginning Accounts Receivable $1,795 6,066 609 Ending Accounts Receivable $2,742 6,594 645 Net Sales $320,427 65,878 66,963 Required: 1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet 2. Which company appears most efficient in collecting cash from sales? Complete this question by entering your answers in the tabs below. Required 1 Required C Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet. (Enter your answers in millions rounded to 1 decimal place.) Receivables Turnover Ratio: WalCo S TarMart. S CostGet S Choose Numerator Choose Numerator "ValCo FarMart CostGet 320,427 $ 65.878 66,963 Choose Denominator Receivables turnover ratio 2,742.0 116.9 times 0 times 0 times Average Collection Period Choose Denominator Average…arrow_forward
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