Adams Inc. determines its expected sales for the next quarter as $800,000 and its margin of safety as 40% Which of the following statements is NOT true for the next quarter for Adams? Group of answer choices An operating loss will occur, if the sales drop by $320,000. The breakeven sales are determined to be $480,000 The company will make a breakeven, if the sales drops by 40%. if the sales drops more than 40%, an operating loss will occur.

Two competitors with very similar offerings currently have 20% and 15% market share respectively. The total market is of about 1,000,000 units per year. Currently, both competitors charge in average $10 per unit. The competitor with the lower market share decides to conquer more of the market and drops the price to $8, with the intent to capture 18% of the market. Is this wise? What is the long term impact on revenue for both companies, given that due to the similarity of their products, it is likely that any gain in market share will be coming from the other close competitor?

Last year company A introduced a new product and sold 25,900 units at $97.00 per unit.  The product variable expense $67.00 per unit with a fixed price expense of $835,500 per year.   a. What is the product's net income or loss last year? b. What is the product break-even point in unit sales and dollar sales? c. Assume the company has conducted a market study that estimates it can increase sales by 5,000 units for each $2.00 reduction in its selling price.  If the company would only consider increments of $2.00(e.g. $68,$66, etc)  What is the maximum annual profit that can be earned on this product?  What sales volume and selling price per unit generate the maximum profit? d. What would be the break-even point in unit sales and dollar sales using the selling price that was determined in the required letter c above?  Thank you,

1. A company enjoys 30% margin and decides to reduce price by 6%. What % sales increase is needed to offset the reduction? 2. A company enjoys 40% margin and decides to increase the price by 8%. How far can sales drop before the company's profits drop below prior levels?

A company is considering switching from a cash only policy to a net 30 credit policy. The price per unit is $500 and the variable cost per unit is $350. The company currently sells 1,400 units per month. Under the proposed policy the company expects to sell 1,500 units per month. The monthly compounded APR is 18%. Calculate the NPV of this switch. Assume that there are 30 days in one month. (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit any commas and the $ sign in your response. For example, an answer of $1,000.50 should be entered as 1000.50) .

Solano Company has sales of $520,000, cost of goods sold of $380,000, other operating expenses of $51,000, average invested assets of $1,650,000, and a hurdle rate of 8 percent. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario’s impact on Solano’s ROI and residual income. (Note: Treat each scenario independently.)a. Company sales and cost of goods sold increase by 40 percent. What is the residual income?   Thanks