Would a over 40% increase in sales be realistic once a product line for a company...
Would a over 40% increase in sales be realistic once a product line for a company is dropped?
Homework Answers
When once a product line is dropped, there will be low income from the product line and the expenses will be higher as the fixed expenses remain constant, when compared to income. In some other cases, the product with low income should be shut down. If certain measures are taken to increase the sales, the sales will increase gradually but not suddenly.
Hence, after the drop in the product line, if there is more percentage of increase in sales than the normal increase, the increase in sales is not realistic
Add Answer to:
Would a over 40% increase in sales be realistic once a product
line for a company...
Would a over 40% increase in sales be realistic once a product line for a company...
Would a over 40% increase in sales be realistic once a product line for a company is dropped?
Corner Market is considering adding a new product line that is expected to increase annual sales...
Corner Market is considering adding a new product line that is expected to increase annual sales by $418,000 and cash expenses by $337,000. The initial investment will require $390,000 in fixed assets that will be depreciated using the 5-year MACRS method to a zero book value over the six-year life of the project. Ignore bonus depreciation. The company has a marginal tax rate of 21 percent. What is the value of the depreciation tax shield for the second year of...
The Lumber Yard is considering adding a new product line that is expected to increase annual...
The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $292,000 and expenses by $196,000. The project will require $105,000 in fixed assets that will be depreciated using the straight-line method to a zero book value over the 9-year life of the project. The company has a marginal tax rate of 34 percent. What is the depreciation tax shield? Multiple Choice $11,107 $11,031 $3,967 $32,640 $11,550
Dress shirt product lines Classic Premium Executive Retail SP $ 75.00 $ 95.00 $ 125.00 %...
Dress shirt product lines Classic Premium Executive Retail SP $ 75.00 $ 95.00 $ 125.00 % of Total Sales 14% 7% 14% Tailoring Costs $ 12.00 $ 16.00 $ 18.00 Shipping Costs $ 35.00 $ 40.00 $ 45.00 Suit product lines Coat Classic Premium Executive Retail SP $ 395.00 $ 475.00 $ 625.00 $ 850.00 % of Total Sales 20% 12% 13% 20% Tailoring Costs $ 55.00 $ 115.00 $ 125.00 $ 135.00 Shipping Costs $ 200.00 $ 210.00 $...
he Lumber Yard is considering adding a new product line that is expected to increase annual...
he Lumber Yard is considering adding a new product line that is expected to increase annual sales by $357,000 and expenses by $248,000. The project will require $157,000 in fixed assets that will be depreciated using the straight-line method to a zero book value over the 6-year life of the project. The company has a marginal tax rate of 35 percent. What is the depreciation tax shield? Multiple Choice $9,158 $20,825 $14,467 $17,008
Your Retail Store's accountant prepared the following income statement for the ladies' bocessories Product line: Sales...
Your Retail Store's accountant prepared the following income statement for the ladies' bocessories Product line: Sales Less Variable expenses $3,000,000 1.410,000 1590,000 Contribution margin Less: Fixed expenses Wages Insurance on inventory Advertising $1,080,000 60.000 650,000 1,800,000 $ 210,000) Net operating income (loss) Management is concerned about the loss and is considering dropping the product line. If the product line is dropped, a job has to be created elsewhere for a long-term employee currently earning an annual salary of $90 000....
Sukui Electronics decided to expand their product line to include GPS trackers. They estimate that over...
Sukui Electronics decided to expand their product line to include GPS trackers. They estimate that over the next 3 years this product will increase their net income by $1.7 million. To do this, they decided not to add a product line of deep sea diving watches. They estimated that over the next 3 years this project would have increased their net income by $800,000. This is an example of
Differential Analysis Report for a Discontinued Product The condensed product-line income statement for Dinner Ware Company...
Differential Analysis Report for a Discontinued Product The condensed product-line income statement for Dinner Ware Company is as follows: DINNER WARE COMPANY Product-Line Income Statement Bowls Plates Cups Sales $1,500,000 $2,350,000 $975,000 (900,000) Cost of goods sold Gross profit (1,400,000) $950,000 (700,000) $250,000 $600,000 (270,000) $330,000 (780,000) $195,000 (300,000) $(105,000) Selling and administrative expenses Operating income (loss) Fixed costs are 40% of the cost of goods sold and 18% of the selling and administrative expenses. Dinner Ware assumes that fixed...
Good Eats, Inc., a national food company, is evaluating whether to extend its product line into...
Good Eats, Inc., a national food company, is evaluating whether to extend its product line into plant-based foods. Given the recent success of Beyond Meat’s IPO and Impossible Foods’ anticipated IPO, Good Eats believes it can acquire the R&D talent to quickly develop similar plant-based products. The new product line would be marketed through its current distribution channels. Good Eats’ management will introduce the new product line early next year. The CFO believes the plant-based product line will require $40...
Segmented Income Statements, Product-Line Analysis Alard Company produces blenders and coffee makers. During the past year,...
Segmented Income Statements, Product-Line Analysis Alard Company produces blenders and coffee makers. During the past year, the company produced and sold 65,000 blenders and 75,000 coffee makers. Fixed costs for Alard totaled $340,000, of which $184,000 can be avoided if the blenders are not produced and $142,500 can be avoided if the coffee makers are not produced. Revenue and variable cost information follows: Blenders Coffee Makers Selling price per appliance $24 $29 Variable expenses per appliance 18 27 Required: 1....
The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $292,000 and expenses by $196,000. The project will require $105,000 in fixed assets that will be depreciated using the straight-line method to a zero book value over the 9-year life of the project. The company has a marginal tax rate of 34 percent. What is the depreciation tax shield? Multiple Choice $11,107 $11,031 $3,967 $32,640 $11,550
Your Retail Store's accountant prepared the following income statement for the ladies' bocessories Product line: Sales Less Variable expenses $3,000,000 1.410,000 1590,000 Contribution margin Less: Fixed expenses Wages Insurance on inventory Advertising $1,080,000 60.000 650,000 1,800,000 $ 210,000) Net operating income (loss) Management is concerned about the loss and is considering dropping the product line. If the product line is dropped, a job has to be created elsewhere for a long-term employee currently earning an annual salary of $90 000....
Differential Analysis Report for a Discontinued Product The condensed product-line income statement for Dinner Ware Company is as follows: DINNER WARE COMPANY Product-Line Income Statement Bowls Plates Cups Sales $1,500,000 $2,350,000 $975,000 (900,000) Cost of goods sold Gross profit (1,400,000) $950,000 (700,000) $250,000 $600,000 (270,000) $330,000 (780,000) $195,000 (300,000) $(105,000) Selling and administrative expenses Operating income (loss) Fixed costs are 40% of the cost of goods sold and 18% of the selling and administrative expenses. Dinner Ware assumes that fixed...
Most questions answered within 3 hours.
-
A 50.0-kg child takes a ride on a Ferris wheel that rotates four
times each minute...
asked 16 minutes ago -
What happens to the distribution of gene alleles when a
reproductive isolation arises between different population...
asked 15 minutes ago -
1 – Balance the following
Bi(OH)3 + SnO22- →
SnO32- +
Bi
asked 27 minutes ago -
Explain what we mean by "The electric field at the point marked
X is 10 N/C."...
asked 39 minutes ago -
What is the positive energy states in Dirac’s picture? It says
that it leaves an empty...
asked 37 minutes ago -
A mutual fund manager has a $20 million portfolio with a beta of
1.7. The risk-free...
asked 36 minutes ago -
Given the following contribution margin income statement
Sales (15000 units 35
$/units)
asked 36 minutes ago -
The heights in feet of some of the girls of SEU
are: 5.8, 6.1, 5.9, 5.4, 5.6,...
asked 1 hour ago -
Caspian Sea Drinks is considering the purchase of a new water
filtration system produced by Rube...
asked 1 hour ago -
Compare and contrast the
social media of Pepsi and Coke? which one is most effective and...
asked 1 hour ago -
1.
Who initiates a lockout?
Group of answer choices
management
employees
unions
arbitrators
asked 1 hour ago -
Many celebrities and public figures have Twitter accounts with
large numbers of followers. However, some of...
asked 1 hour ago