Please attempt this problem. Thanks in advance 2) Milton Company's projected profit for the coming year is as follows:DescriptionTotalPer UnitSales200,000.00$20.00less: Variable expenses 120,000.0012.00Contribution margin80,000.00$8.00Less fixed expenses64,000.00Operating income16,000.00Required:A) Compute the break- even points in unitsB) How many unit must be sold to earn a profit of $30,000.00 ?C)Suppose Milton would like to earn operating income equal to 20 percent of sales revenue.How many units must be sold for this goal to be realized?D) For the projected level of sales, compute the margin of safety.

Answered: Image /qna-images/answer/cfb8fded-3d6f-4334-9c9c-3b86c7f1ad62.jpg

Answered: Required: A) Compute the break- even…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

See similar textbooks

Similar questions

Capital Budgeting with Taxes (Non-MACRS Depreciation); Sensitivity Analysis GravinaCompany is planning to spend $6,000 for a machine that it will depreciate on a straight-line basisover 10 years with no salvage value. The machine will generate additional cash revenues of $1,200 ayear. Gravina will incur no additional costs except for depreciation. Its income tax rate is 35%. Thepresent value annuity factor for 15%, 10 years (from Appendix C, Table 2) is 5.019.Required1. What is the payback period of the proposed investment (in years, and rounded to 1 decimal place) underthe assumption that the cash inflows occur evenly throughout the year?2. What is the accounting (book) rate of return (ARR) based on the initial investment outlay? Round youranswer to 1 decimal place (e.g., 13.571% = 13.6%).
Which would result in a positive budget forecasting error? 1. Overlooking a source of investment income II. Not taking into account an expense paid once а year II. Switching to a less costly gym v. Underestimating annual car expenses V. Overestimating expected capital gains
The Role of Income Taxes For the most recent year, Triad Company had fixed costs of $240,000and variable costs of 75% of total sales revenue, earned $70,000 of net income after taxes, and anincome tax rate of 35%.Required Determine:1. Before-tax income.2. Total contribution margin.3. Total sales.4. Breakeven point in dollar sales
- Please explain two characteristics of the maximum of minimum profits criterion (Maximin method)
38. Last year, the Montvilo family spent $1,745.10 for electricity. They are optingto use balanced billing for next year. What will their monthly payment beunder balanced billing? A. $1,745.10B. $290.85C. $174.51D. $145.43
In 2015, Keenan Company paid dividends totaling $3,600,000 on net income of $10.8 million. Note that 2015 was a normal year and that for thepast 10 years, earnings have grown at a constant rate of 10%. However, in 2016, earnings are expected to jump to $14.4 million and the firm expects to have profitable investment opportunities of $8.4 million. It is predicted that Keenan will not be able to maintain the 2016 level of earnings growth because the high 2016 earnings level is attributable to an exceptionallyprofitable new product line introduced that year. After 2016, the company will return to its previous 10% growth rate. Keenan’s target capital structure is 40% debt and 60% equity.a. Calculate Keenan’s total dividends for 2016 assuming that it follows each of the following policies:1. Its 2016 dividend payment is set to force dividends to grow at the long-run growth rate in earnings.2. It continues the 2015 dividend payout ratio. 3. It uses a pure residual dividend policy (40% of the…
Consider the following information: Economy Recession Normal Boom Probability of State of Economy .23 .58 .19 Rate of Return if State Occurs Stock B a. Expected return of A Expected return of B b. Standard deviation of A Standard deviation of B Stock A .025 .105 .270 a. Calculate the expected return for the two stocks. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. b. Calculate the standard deviation for the two stocks. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. -.38 .28 .51 % % % %
D1. Account What are the five available reductions from gross taxable income to calculate net taxable income?
Campers Ltd was established in 2010 and have had impressive returns for the years precedingCOVID-19. After going into the reserves to keep the business afloat, they have had to developnew strategies. The board has approved an initiative that requires the company to take a R50million.(Information extracted from their Balance Sheet)Total Assets – R50 millionTotal Liabilities – R 40 million(Information extracted from the Income Statement)Bank account – R25 millionRental – R5 million (per annum)Utilities (fibre, telephone, water and electricity, security) – R1 millionSalaries -R15 million Q.2.2 Assume for this question only that Mrs Funeka, the chairperson of the board, takes it upon herself to acquire a loan on behalf of the company without the necessary resolution. The contract is entered into between Mrs Funeka on behalf of the company and Kekana Investments. Is the contract valid? Can the company be bound by the agreement? In your answer discuss the following:• The impact of the…
Subject: Logistic Management Q#6) What is Porters Power Model explain with example? Q#7) What is risk management & mitigation explain with example?
Please Help I am confused. Classifying Costs The following is a list of costs that were incurred in the production and sale of large commercial airplanes: Classify each cost as either a product cost or a period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Costs Classification a. Annual bonus paid to the chief operating officer of the company b. Annual fee to a celebrity to promote the aircraft c. Cost of electronic guidance system installed in the airplane cockpit d. Cost of electrical wiring throughout the airplane e. Cost of miniature replicas of the airplane used to promote and market the airplane f. Cost of normal scrap from production of airplane body g. Cost of paving the headquarters employee parking lot h. Decals for cockpit door, the cost of which is immaterial to the cost of the…
Subject: Quantitative research method Which items load onto which factors? Can you name them based on the items that load onto them? (150 words) Rotated Factor Matrix Items Factors 1 2 3 4 5 The appearance of the physical facility .695 -.054 .153 .119 .193 Personnel appearance and equipment .823 -.012 .096 .045 -.002 Ability to perform the promised services .052 .193 .718 .210 -.023 Willingness to help customers .270 -.013 .052 .232 .586 Knowledge and courtesy of employees .018 .769 -.046 .187 .005 Ability to convey trust and confidence -.028 .678 .035 .024 .090 Caring .172 .160 .215 .604 .155 Ability to accurately accomplish .174 .009 .640 .107 .127 Provide prompt services .170 -.210 .188 -.044 .720 Individual attention to customer .249 .093 .200 .638 .298

SEE MORE QUESTIONS

Recommended textbooks for you

Marketing

ISBN:

9780357033791

Author:

Pride, William M

Publisher:

South Western Educational Publishing

Marketing

ISBN:

9780357033791

Author:

Pride, William M

Publisher:

South Western Educational Publishing

SEE MORE TEXTBOOKS