Question

Microbiotics currently sells all of its frozen dinners cash-on-delivery but believes it can increase sales by offering superm
0 0
Add a comment Improve this question Transcribed image text
Answer #1


IF ANY QUERY, FEEL FREE TO ASK Solution Current Profit = Units X contribution per unit 1020 x (70-50) 20400 a. Monthly profit

Add a comment
Know the answer?
Add Answer to:
Microbiotics currently sells all of its frozen dinners cash-on-delivery but believes it can increase sales by...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Microbiotics currently sells all of its frozen dinners cash on delivery but believes it can increase...

    Microbiotics currently sells all of its frozen dinners cash on delivery but believes it can increase sales by offering supermarkets 1 month of free credit. The price per carton is $60, and the cost per carton is $45. The unit sales will increase from 1,160 cartons to 1,220 per month if credit is granted. Assume all customers pay their bills and take full advantage of any credit period offered. a. If the interest rate is 1% per month, what will...

  • Microbiotics currently sells all of its frozen dinners cash on delivery but believes it can increase sales by offering supermarkets 1 month of free credit. The price per carton is $70, and the cost pe...

    Microbiotics currently sells all of its frozen dinners cash on delivery but believes it can increase sales by offering supermarkets 1 month of free credit. The price per carton is $70, and the cost per carton is $50. The unit sales will increase from 1,020 cartons to 1,080 per month if credit is granted. Assume all customers pay their bills and take full advantage of any credit period offered. a. If the interest rate is 1% per month, what will...

  • Codiac Corp. currently has an all-cash credit policy. It is considering making a change in the...

    Codiac Corp. currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30 days. The required return is 0.91 percent per month Price per unit Cost per unit Unit sales per month Current Policy $ 250 $ 182 1,770 New Policy $ 255 $ 187 1.820 Calculate the NPV of the decision to change credit policies (Negative answer should be indicated by a minus sign. Do not round...

  • Codiac Corp. currently has an all-cash credit policy. It is considering making a change in the...

    Codiac Corp. currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30 days. The required return is 0.58 percent per month Price per unit Cost per unit Unit sales per month Current Policy $ 155 $ 125 1.200 New Policy $ 158 $ 128 1230 Calculate the NPV of the decision to change credit policies (Negative answer should be indicated by a minus sign. Do not round...

  • A project currently generates sales of $10.5 million, variable costs equal to 40% of sales, and...

    A project currently generates sales of $10.5 million, variable costs equal to 40% of sales, and fixed costs of $2.2 million. The firm's tax rate is 35%. a. What are the effects on the after-tax profits and cash flow, if sales increase from $10.5 million to $12 million. (Input all amounts as positive values. Do not round intermediate calculations. Enter your answers in millions rounded to 3 decimal places.) After-tax profit (Click to select) by Cash flow (Click to select)...

  • A project currently generates sales of $11.4 million, variable costs equal to 50% of sales, and...

    A project currently generates sales of $11.4 million, variable costs equal to 50% of sales, and fixed costs of $3.4 million. The firm's tax rate is 30%. a. What are the effects on the after-tax profits and cash flow, if sales increase from $11.4 million to $12.8 million. (Input all amounts as positive values. Do not round intermediate calculations. Enter your answers in millions rounded to 3 decimal places.) After-tax profit increased Cash flow increased by $ by $1 million....

  • Jungle, Inc., currently has an all-cash credit policy. It is considering making a change in the...

    Jungle, Inc., currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30 days. Based on the following information, what is the break-even price per unit under the new credit policy? The required return is 91 percent per month. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) New Policy Price per unit Cost per unit Unit sales per month Current Policy...

  • A project currently generates sales of $11.2 million, variable costs equal to 50% of sales, and...

    A project currently generates sales of $11.2 million, variable costs equal to 50% of sales, and fixed costs of $2.1 million. The firm's tax rate is 20%. a. What are the effects on the after-tax profits and cash flow, if sales increase from $11.2 million to $12.6 million. (Input all amounts as positive values. Do not round intermediate calculations. Enter your answers in millions rounded to 3 decimal places.) After-tax profit Click to select) by $ Cash flow (Click to...

  • Initiating a cash discount Gardner Company currently makes all sales on credit and offers no cash discount. The firm is...

    Initiating a cash discount Gardner Company currently makes all sales on credit and offers no cash discount. The firm is considering offering a 4% cash discount for payment within 15 days. The firm's current average collection period is 60 days, sales are 40,000 units, selling price is $48 per unit, and variable cost per unit is $30. The firm expects that the change in credit terms will result in an increase in sales to 41,000 units, that 70% of the...

  • A project currently generate sales of $10.5 million, variable costs equal to 40% of sales, and...

    A project currently generate sales of $10.5 million, variable costs equal to 40% of sales, and fixed costs of $2.2 million. The firms tax rate is 35%. A project currently generates sales of $10.5 million, variable costs equal to 40% of sales, and fixed costs of $2.2 million. The firm's tax rate is 35%. a. What are the effects on the after-tax profits and cash flow, if sales increase from $10.5 million to $12 million. (Input all amounts as positive...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT