Calculate the number of bottles that Company W must sell to meet its target profit.

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Chapter 9, Problem 16BE

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Calculate the number of bottles that Company W must sell to meet its target profit.

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Danforth Industries had the following activities, traceable costs, and physical flow of driver units: • • Technical support (hours): $380,000 total cost, 10,000 hours Shipping processing (orders): $275,000 total cost, 3,600,000 orders • Account reconciliation (accounts): $145,000 total cost, 38,000 accounts Customer correspondence (letters): $50,000 total cost, 4,800 letters The above activities are used by Division A and Division B as follows: Technical support hours: 2,500 hours (Division A), 4,500 hours (Division B) Shipping processing orders: 480,000 orders (Division A), 210,000 orders (Division B) Account reconciliation accounts: 9,500 accounts (Division A), 8,200 accounts (Division B) Customer correspondence letters: 1,100 letters (Division A), 1,600 letters (Division B) How much of the technical support cost will be assigned to Division A?

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Glenwood Industries made a $310,000 investment in new machinery. Assuming the company's margin is 6.5%, what income will be earned if the investment generates $600,000 in additional sales?