Based on the data in Table 1, if only 100,000 units are sold instead of 150,000, to achieve the target return of 10%, what will the selling price be?
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Based on the data in Table 1, if only 100,000 units are sold
instead of 150,000,...
marketing 1200 Value 10% Data for Questions 3 and 4 Item Units Sold 100.000 Unit Cost...
marketing 1200
Value 10% Data for Questions 3 and 4 Item Units Sold 100.000 Unit Cost $40 Target Refum on Sales Advertising $1,500,000 Consumer Promotion 51 00 000 Personal Selling 5 salespeople @ Seok each Dealer Promotion $1,200,000 Product Development $700.000 3. Calculate the break-even price. 4. What would the selling price have to be to get the target return? 5. What other factors besides break-even should you consider before setting price?
Table 1: Pepita Disco Performance, 2011 (UYU in millions) Units sold 100 million units Revenue 200...
Table 1: Pepita Disco Performance, 2011 (UYU in millions) Units sold 100 million units Revenue 200 Variable costs Materials 30 Direct labor(manufacturing,sales) 40 Opearational costs(manufacturing,inventory,delivery) 30 Other variable costs 20 Margin on Sales 80 Fixed Costs Marketing and advertising 10 Research and development 10 Other fixed costs(e.g head office) 40 Net margin 20 a. Reduce all variable costs 10%? b Get its salespeople to sell 10% more? c Raise its price 10%? g. Lower its price 10%?
The East Company is operating at full capacity and sold 100,000 units at a price of...
The East Company is operating at full capacity and sold 100,000 units at a price of $80 per unit during 2020. Its gross margin (profit) income statement for 2020 is as follows: Sales $8,000,000 Cost of goods sold 4,000,000 Gross profit 4,000,000 Operating expenses: Selling expenses $2,500,000 Administrative expenses 500,000 Total operating expenses 3,000,000 Operating income $1,000,000 The proportion of the above costs between fixed and variable is as follows: Fixed Variable Cost of goods sold $4,000,000 35% 65% Selling...
The HighStep Shoe Company operates a chain of shoe stores that sell 10 different styles of...
The HighStep Shoe Company operates a chain of shoe stores that sell 10 different styles of inexpensive men's shoes with identical unit costs and selling prices. A unit is defined as a pair of shoes. Each store has a store manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission. HighStep is considering opening another store that is expected to have the revenue and cost relationships shown here. (Click the icon to view...
13-23 Cost-plus, target pricing, working backward. KidsPlay, Inc., manufactures and sells table sets. In 2016, it...
13-23 Cost-plus, target pricing, working backward. KidsPlay, Inc., manufactures and sells table sets. In 2016, it reported the following: Units produced and sold Investment Markup percentage on full cost Rate of return on investment Variable cost per unit 3,000 $3,000,000 10% 15% $600 Required: 1. What was KidsPlay's operating income in 2016? What was the full cost per unit? What was the selling price? What was the percentage markup on variable cost to achieve the selling price? What are the...
Income statement data: Advertising expense Cost of goods sold Dellvery expense S 150,000 3,700,000 30,000 30,000 100,000 140,500 21,000 30,000 .500 14,000 50,000 170,000 10,000 5,313,000 185,000 385,...
Income statement data: Advertising expense Cost of goods sold Dellvery expense S 150,000 3,700,000 30,000 30,000 100,000 140,500 21,000 30,000 .500 14,000 50,000 170,000 10,000 5,313,000 185,000 385,000 21,000 Depreciation expense-office buildings and equipment Depreciation expense -store buildings and equipment Income tax expense interest expense Interest revenue Miscellaneous selling expense Office rent expense Office salaries expense Office supplies expense Sales salaries expense Store supplies expense earnings and balance sheet data: Accounts payable Accounts recelvable s 194300 545,000 1,580,000 4,126,000 8,450...
FlashCo. Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices)....
FlashCo. Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices). Price and cost data fc relevant range extending to 200,000 units per month are as follows: (Click the icon to view the data.) Read the requirements. Requirement 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? Begin by identifying the formula = Contribution margin per unit The contribution margin per unit is $ What is the company's contribution...
ALPINE, INC. Income Statement For the year ended June 30, 2019 Sales (40,000 Units at $12)...
ALPINE, INC. Income Statement For the year ended June 30, 2019 Sales (40,000 Units at $12) $480,000 Less: Cost of Goods Sold Direct Materials Direct Labor Manufacturing Overhead $120,000 / 40000 = 3.0 65,600 40000 = 1.64 90.000 275,600 Gross Margin 204,400 Less: Operating expenses: Selling expenses: Variable: Sales Commissions Shipping -.96 $38,400/48000 = .08-> 8% 14,000 52,400 30400 40000 unit Fixed (Advertising, salaries) 110,000 Administrative expenses: Variable (billing, other) Fixed (salaries, other) 3,200 85,000 250,600 Net Loss $(46,200) All...
Requirements 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin?...
Requirements 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? 2. What would the company's monthly operating income be if the company sold 150,000 units? 3. What would the company's monthly operating income be if the company had sales of $4,500,000? 4. What is the breakeven point in units? In sales dollars? 5. How many units would the company have to sell to earn a target monthly profit of $260,400? 6. Management is currently...
Show All Your Works How You Do It: Calculate the new breakeven point in Requirement GigaCo...
Show All Your Works How You Do It: Calculate the new breakeven point in Requirement GigaCo Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices). Price and cost data for a relevant range extending to 200,000 units per month are as follows: Requirements -X Data Table 20.00 Sales price per unit: (current monthly sales volume is 120,000 units) .... $ Variable costs per unit: Direct materials ...........$ 740 1. What is the company's contribution...
marketing 1200
Value 10% Data for Questions 3 and 4 Item Units Sold 100.000 Unit Cost $40 Target Refum on Sales Advertising $1,500,000 Consumer Promotion 51 00 000 Personal Selling 5 salespeople @ Seok each Dealer Promotion $1,200,000 Product Development $700.000 3. Calculate the break-even price. 4. What would the selling price have to be to get the target return? 5. What other factors besides break-even should you consider before setting price?
The East Company is operating at full capacity and sold 100,000 units at a price of $80 per unit during 2020. Its gross margin (profit) income statement for 2020 is as follows: Sales $8,000,000 Cost of goods sold 4,000,000 Gross profit 4,000,000 Operating expenses: Selling expenses $2,500,000 Administrative expenses 500,000 Total operating expenses 3,000,000 Operating income $1,000,000 The proportion of the above costs between fixed and variable is as follows: Fixed Variable Cost of goods sold $4,000,000 35% 65% Selling...
The HighStep Shoe Company operates a chain of shoe stores that sell 10 different styles of inexpensive men's shoes with identical unit costs and selling prices. A unit is defined as a pair of shoes. Each store has a store manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission. HighStep is considering opening another store that is expected to have the revenue and cost relationships shown here. (Click the icon to view...
13-23 Cost-plus, target pricing, working backward. KidsPlay, Inc., manufactures and sells table sets. In 2016, it reported the following: Units produced and sold Investment Markup percentage on full cost Rate of return on investment Variable cost per unit 3,000 $3,000,000 10% 15% $600 Required: 1. What was KidsPlay's operating income in 2016? What was the full cost per unit? What was the selling price? What was the percentage markup on variable cost to achieve the selling price? What are the...
Income statement data: Advertising expense Cost of goods sold Dellvery expense S 150,000 3,700,000 30,000 30,000 100,000 140,500 21,000 30,000 .500 14,000 50,000 170,000 10,000 5,313,000 185,000 385,000 21,000 Depreciation expense-office buildings and equipment Depreciation expense -store buildings and equipment Income tax expense interest expense Interest revenue Miscellaneous selling expense Office rent expense Office salaries expense Office supplies expense Sales salaries expense Store supplies expense earnings and balance sheet data: Accounts payable Accounts recelvable s 194300 545,000 1,580,000 4,126,000 8,450...
FlashCo. Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices). Price and cost data fc relevant range extending to 200,000 units per month are as follows: (Click the icon to view the data.) Read the requirements. Requirement 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? Begin by identifying the formula = Contribution margin per unit The contribution margin per unit is $ What is the company's contribution...
ALPINE, INC. Income Statement For the year ended June 30, 2019 Sales (40,000 Units at $12) $480,000 Less: Cost of Goods Sold Direct Materials Direct Labor Manufacturing Overhead $120,000 / 40000 = 3.0 65,600 40000 = 1.64 90.000 275,600 Gross Margin 204,400 Less: Operating expenses: Selling expenses: Variable: Sales Commissions Shipping -.96 $38,400/48000 = .08-> 8% 14,000 52,400 30400 40000 unit Fixed (Advertising, salaries) 110,000 Administrative expenses: Variable (billing, other) Fixed (salaries, other) 3,200 85,000 250,600 Net Loss $(46,200) All...
Requirements 1. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? 2. What would the company's monthly operating income be if the company sold 150,000 units? 3. What would the company's monthly operating income be if the company had sales of $4,500,000? 4. What is the breakeven point in units? In sales dollars? 5. How many units would the company have to sell to earn a target monthly profit of $260,400? 6. Management is currently...
Show All Your Works How You Do It: Calculate the new breakeven point in Requirement GigaCo Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices). Price and cost data for a relevant range extending to 200,000 units per month are as follows: Requirements -X Data Table 20.00 Sales price per unit: (current monthly sales volume is 120,000 units) .... $ Variable costs per unit: Direct materials ...........$ 740 1. What is the company's contribution...
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