Tony Manufacturing produces a single product that sells for $80
Tony Manufacturing produces a single product that sells for $80. Variable costs per unit equal $45. The company expects total fixed costs to be 580,000 for the next month at the projected sales level of 2500 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately Suppose management believes that a $90,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales must increase by to justify this additional expenditure?
Homework Answers
| Current Expected Position | |
| Projected Sales Level | 2500 |
| Sale Price | 80 |
| Variable Cost | 45 |
| Contribution Per unit | 35 |
| Total Contribution | 87500 |
| Estimated Fixed Cost | 80000 |
| Profit | 7500 |
| Position after change in Fixed Cost | |
| Fixed Cost (80000+90000) | 170000 |
| Minimum Required Profit | 7500 |
| Contribution Required | 177500 |
| Contribution Per Unit | 35 |
| Sales Required | 5072 |
| Increase in Sales required | 2572 |
| Hence, Sales must increase by 2572 units to justify the | |
| additional expenditure on Advertisment. |
Tony Manufacturing produces a single product that sells for $80. Variable costs per unit equal $45....
Tony Manufacturing produces a single product that sells for $80. Variable costs per unit equal $45. The company expects total fixed costs to be $80,000 for the next month at the projected sales level of 2500 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately.Suppose management believes that a $90,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales must increase...
Tony Manufacturing produces a single product that sells for $110. Variable costs per unit equal $40....
Tony Manufacturing produces a single product that sells for $110. Variable costs per unit equal $40. The company expects total fixed costs to be $82,000 for the next month at the projected sales level of 3000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. Suppose management believes that a $80,000 increase in the monthly advertising expense will result in a considerable increase in sales, Sales must...
Tony Manufacturing produces a single product that sells for $110. Variable costs per unit equal $40. The company ex...
Tony Manufacturing produces a single product that sells for $110. Variable costs per unit equal $40. The company expects total fixed costs to be $82,000 for the next month at the projected sales level of 3000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately Suppose management believes that a $80,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales must...
Craylon Manufacturing produces a single product that sells for $120. Variable costs per unit equal $28....
Craylon Manufacturing produces a single product that sells for $120. Variable costs per unit equal $28. The company expects total fixed costs to be $60,000 for the next month at the projected sales level of 1,000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. Suppose that management believes that a $14,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales...
Question 12 1.5 points Craylon Manufacturing produces a single product that sells for $100. Variable costs...
Question 12 1.5 points Craylon Manufacturing produces a single product that sells for $100. Variable costs per unit equal $30. The company expects total foxed costs to be $60,000 for the next month at the projected sales level of 1100 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately Suppose that management believes that a $16,000 increase in the monthly advertising expense will result in a considerable...
Question 12 1.5 points Craylon Manufacturing produces a single product that sells for $100. Variable costs...
Question 12 1.5 points Craylon Manufacturing produces a single product that sells for $100. Variable costs per unit equal $30. The company expects total foxed costs to be $60,000 for the next month at the projected sales level of 1100 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately Suppose that management believes that a $16,000 increase in the monthly advertising expense will result in a considerable...
Tony Manufacturing produces a single product that sells for $90. Variable costs per unit equal $45....
Tony Manufacturing produces a single product that sells for $90. Variable costs per unit equal $45. The company expects total foxed costs to be $83,000 for the next month at the projected sales level of 2900 units in an attempt to improve performance management is considering a number of alternative actions. Each situation is to be evaluated separately Suppose that management believes that a 12% reduction in the selling price will result in a 12% increase in sales. If this...
If the contribution margin ratio is 0.40, targeted operating income is $95,000, and targeted sales volume...
If the contribution margin ratio is 0.40, targeted operating income is $95,000, and targeted sales volume in dollars is $520,000, then the degree of operating leverage is ________. 3.28 times 0.46 times 1.50 times 2.19 times Sales of Blistre Autos are 350,000, variable cost is 210,000, fixed cost is 90,000 tax rate is 40%. Calculate the operating leverage of the company. 1.50 times 2.80 times 4.67 times 1.80 times Tony Manufacturing produces a single product that sells for $80. Variable...
Craylon Manufacturing produces a single product that sells for $100. Variable costs per unit equal $25....
Craylon Manufacturing produces a single product that sells for $100. Variable costs per unit equal $25. The company expects total fixed costs to be $70,000 for the next month at the projected sales level of 1,400 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. One alternative is to increase advertsing expenses by $12,000. What is the effect on operating income with the increase of advertising expenses?...
Craylon Manufacturing produces a single product that sells for $110. Variable costs per unit equal $30....
Craylon Manufacturing produces a single product that sells for $110. Variable costs per unit equal $30. The company expects total fixed costs to be $65,000 for the next month at the projected sales level of 1,300 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. One alternative is to increase advertsing expenses by $10,000. What is the effect on operating income with the increase of advertising expenses?...
Tony Manufacturing produces a single product that sells for $80. Variable costs per unit equal $45. The company expects total fixed costs to be $80,000 for the next month at the projected sales level of 2500 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately.Suppose management believes that a $90,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales must increase...
Tony Manufacturing produces a single product that sells for $110. Variable costs per unit equal $40. The company expects total fixed costs to be $82,000 for the next month at the projected sales level of 3000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. Suppose management believes that a $80,000 increase in the monthly advertising expense will result in a considerable increase in sales, Sales must...
Tony Manufacturing produces a single product that sells for $110. Variable costs per unit equal $40. The company expects total fixed costs to be $82,000 for the next month at the projected sales level of 3000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately Suppose management believes that a $80,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales must...
Craylon Manufacturing produces a single product that sells for $120. Variable costs per unit equal $28. The company expects total fixed costs to be $60,000 for the next month at the projected sales level of 1,000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. Suppose that management believes that a $14,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales...
Question 12 1.5 points Craylon Manufacturing produces a single product that sells for $100. Variable costs per unit equal $30. The company expects total foxed costs to be $60,000 for the next month at the projected sales level of 1100 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately Suppose that management believes that a $16,000 increase in the monthly advertising expense will result in a considerable...
Question 12 1.5 points Craylon Manufacturing produces a single product that sells for $100. Variable costs per unit equal $30. The company expects total foxed costs to be $60,000 for the next month at the projected sales level of 1100 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately Suppose that management believes that a $16,000 increase in the monthly advertising expense will result in a considerable...
Tony Manufacturing produces a single product that sells for $90. Variable costs per unit equal $45. The company expects total foxed costs to be $83,000 for the next month at the projected sales level of 2900 units in an attempt to improve performance management is considering a number of alternative actions. Each situation is to be evaluated separately Suppose that management believes that a 12% reduction in the selling price will result in a 12% increase in sales. If this...
Craylon Manufacturing produces a single product that sells for $110. Variable costs per unit equal $30. The company expects total fixed costs to be $65,000 for the next month at the projected sales level of 1,300 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. One alternative is to increase advertsing expenses by $10,000. What is the effect on operating income with the increase of advertising expenses?...
Most questions answered within 3 hours.
-
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 1 hour ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 1 hour ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 1 hour ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 1 hour ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 1 hour ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 1 hour ago -
Given the information in the table, which of the following
statements is CORRECT?
Stock A
Stock...
asked 1 hour ago -
Write MARIE assembly language programs that do the following:
Write a program that inputs an integer...
asked 1 hour ago -
Explain an understanding of services and protocols.
Explain the job of DNS.
Explain the three email...
asked 2 hours ago -
(As soon as possible) Balance each of the following equations
according to the half-reaction method:
H2O2(aq)...
asked 2 hours ago -
A thin rod with a mass of 3.5kg and a length L=1.5 m is oriented
horizontally....
asked 2 hours ago -
Inheritance pattern in BRCA 1
Describe the inheritance pattern of BRCA 1 Is it recessive or...
asked 2 hours ago