3. Another idea that Gretchen had was to eliminate sales commissions. Hallstead's was the onlyjewelry store in the city that paid sales commissions, and although both Grandfather and Father had insisted that commissions were one of the reasons for their success, Gretchen had her doubts? How would the elimination of sales commissions affect the breakeven volume?
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- Economic All the work on A. is correct. All the chegg answers I found on here were wrong for Part B. The$1,500 is correct, BUT, the numbers underneath it are incorrect. All answers on chegg were wrong so please do not correlate your answer with someone elses. The answers for cost of goods sold are NOT 1400, 1100, 1083, or 1500, 1,300 etc so pick a different number & let's hope it is right. If I give a thumbs down you got it wrong. The answers for Gross Profit are NOT 300, 317, 200.3.1 REQUIRED Study the information provided below and answer the following questions:3.1.1 If the sales manager’s proposal is rejected, calculate the total revenues at break-even by using the contribution margin ratio. (4 marks) 3.1.2 Calculate the additional expenditure that the company can afford to spend on advertising, in keeping with the sales manager’s proposal. (4 marks) 3.1.3 Calculate the break-even quantity if the sales manager’s proposal is accepted (using the proposed new selling price and the increase in the advertising outlay). (4 marks)INFORMATION Denel Enterprises manufactures a product that sells for R180 each.The company presently produces and sells 120 000 units per year. Unit variable manufacturing expenses and variable selling expenses are R90 and 10% of the sales price respectively. Fixed costs are R4 536 000 for manufacturing overheads and R1 944 000 for selling and administrative activities. The sales manager has proposed that the price be increased to R216 per…A company is providing its product to the consumer through the wholesalers. The managing director of the company thinks that if the company starts selling through retailers or to the consumers directly, it can increase its sales, charge higher prices and make more profit. On the basis of the following information and consider variable cost is rial 2.50 per unit and fixed cost is rial 50000. (a) Advise the managing director whether the company should change its channel of distribution or not (with calculation and Justification). (b) Provide suggestions and recommendations on the basis of analysis.
- 1a. Discuss the concept of cost of goods sold. Why is it so important? What is the downside for you, as owner of the company, not knowing what your cost of goods sold on an overall, product line and/or unit basis? Please explain. 1b. As the owner of your company, why are contribution margins and contribution margin ratios important to you? Why is the break-even point important to you? If your sales are below the break-even point, would you still keep your company open? Why or why not? If you closed your doors, would you still be responsible for the payment of your fixed expenses? List some of them and state the reason why.Last In, First Out Two-part consideration: Why do you think a company would ever choose to use perpetual LIFO as its costing method? It is clearly more trouble to calculate than other methods and doesn’t really align with the natural flow of the merchandise, in most cases. Should the order in which the items are actually sold determine which costs are used to offset sales revenues from those goods? Explain your understanding of these issues.1. What is the relevant cost to make the part? State answer in total dollars NOT per unit and as a positive number. 2. Should Ran Corporation make the part? 3. What should Ran ignore? Why? 4. What would be the impact on total Net Income if Ran corporation accepted the supplier's offer? Show a negative for a loss, positive for a gain.
- EA5. LO 9.4 Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only to department B (they have no outside sales). After calculating the operating income in dollars and operating income in percentage, analyze the following financial information to determine costs that may need further investigation. (Hint: It may be helpful to perform a vertical analysis.)the Victor Inc. as a custom because of COVID-19? 2. Please calculate the operating income(loss) if Scenario drop Victor Inc. as a custom. 3. Should Scenario keep Victor as a customer or just drop it? Why? Question 5: Please use an example to explain the opportunity-cost concept and why it is used in decision-making. tions: On DELLQuestion 1.Good Dentist Ltd. produces three distinct products and sells them in bulk to smaller retailers. Itsmanagers are concerned that the company's profit is not as high as its competitors. They believethey fall in profits could be caused due to the company's uncompetitive selling price(s), for one ormore product, and losses on other products. Details of the company's costs and selling prices are asfollows:Product Dental Tool Kit Dental Whitening Kit Electric Toothbrush£ £ £Selling Price 14.00 40.00 50.00Direct CostsLabour 4.00 9.00 15.00Direct Material - nylon bristles 5.00Direct Material - other 3.00 21.00 15.00Total Direct Cost 7.00 30.00 35.00Units produced 4,000 5,000 7,000Labour hours 1 hour per unit 2 hour per unit 2 hour per unitCurrently the company uses the traditional method of allocating indirect overheads but isconsidering using the ABC method for increasing the accuracy. The company's indirect overheadsare as follows:£Depreciation 20,000Purchasing Expenses…
- The success of a business depends on many things. For example, you are the senior manager of the ABC Hypermarket, Explain Mr. Said, the new manager how to understand the customers and the competition. In addition also explain control costs and how to price their products and services. Explain Mr. Said about Markup & Margin with the following situations. Required: (a) Situation 1: Calculating OMR amount of markup and percent markup on cost. Signature" jeans cost, OMR 1800. Signature" jeans selling price OMR 2300. (b) Situation 2: Calculating selling price based on following information. Lamp cost, OMR200. 40% markup on selling price (c) Situation 3: Calculating cost based on following information Tennis racket selling price OMR 800 40% markup on costpart 6 7 needed just 6. Again, assume that the average and marginal costs are constant and equal to 14. Now assumethatPat knowsthe tastes and preferencesofall consumers andthat the conditions thatallow price discrimination apply.(A) What quantity will Pat supply?(B) At whatprices will she sell tattoos?; , , $17, ,,(C) Whatis the amount of consumersurplusgenerated?CS= 7. Without calculating profit, explain how Pat’s profits differ among cases 4, 5 and 6.14. Customer life-cycle costs: Select one: a. Are the replacement costs of using a product or service. b. Are the costs to the customer of buying and using a product until it is replaced. c. Are the same as the selling life-cycle prices. d. Focus on marketing costs. e. Are the costs the selling company incurs to satisfy the customer.