(Forecasting revenues using scenario analysis) (Related to Checkpoint 13.3 on page 451) Floating Homes, Inc., is a manufacturer of luxury pontoon and houseboats that sell for $40,000 to $100,000. To estimate its revenues for the following year, Floating Homes divides its boat sales into three categories based on selling price (high, medium, and low) and estimates the number of units it expects to sell under three different economic scenarios. These scenarios include a recession (Scenario I), a continuation of current conditions in which the economy is level or unchanged (Scenario II), and a strong economy (Scenario III). These estimates are as follows: Scenario I: Recession Scenario II: Level Economy Strong Economy Scenario II: Probability 25% 50% 25% High-Priced Boats Category Unit sales 50 400 1,000 Average price per unit $80,000 $90,000 $95,000 Medium-Priced Boats Category Unit sales 100 800 3,000 Average price per unit $60,000 $70,000 $80,000 Low-Priced Boats Category Unit sales 200 1,500 5,000 Average price per unit $50,000 $50,000 $50,000 Using these estimates, calculate the expected revenue for Floating Homes, Inc., for the following year.

(Forecasting revenues using scenario analysis) (Related to Checkpoint 13.3 on page 451) Floating Homes, Inc., is a manufacturer of luxury pontoon and houseboats that sell for $40,000 to $100,000. To estimate its revenues for the following year, Floating Homes divides its boat sales into three categories based on selling price (high, medium, and low) and estimates the number of units it expects to sell under three different economic scenarios. These scenarios include a recession (Scenario I), a continuation of current conditions in which the economy is level or unchanged (Scenario II), and a strong economy (Scenario III). These estimates are as follows: Scenario I: Recession Scenario II: Level Economy Strong Economy Scenario II: Probability 25% 50% 25% High-Priced Boats Category Unit sales 50 400 1,000 Average price per unit $80,000 $90,000 $95,000 Medium-Priced Boats Category Unit sales 100 800 3,000 Average price per unit $60,000 $70,000 $80,000 Low-Priced Boats Category Unit sales 200 1,500 5,000 Average price per unit $50,000 $50,000 $50,000 Using these estimates, calculate the expected revenue for Floating Homes, Inc., for the following year.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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MBI Incorporated had sales of $35 million for fiscal 2022. The company's gross profit ratio for that year was 26%. Required: a. Calculate the gross profit and cost of goods sold for MBI for fiscal 2022. b. Assume that a new product is developed and that it will cost $469 to manufacture. Calculate the selling price that must be set for this new product if its gross profit ratio is to be the same as the average achieved for all products for fiscal 2022. c. From a management viewpoint, it could use the estimated selling price as a "target" in conducting marketing research studies to assess its ultimate prospects for success at this price. Complete this question by entering your answers in the tabs below. Required A Required B Required C From a management viewpoint, it could use the estimated selling price as a "target" in conducting marketing research studies to assess its ultimate prospects for success at this price.
ABB Company reported the results from sales of 5,000 units of Product Y for April 2022. See image.Assume that ABB plans to increase the selling price of Product Y by 10% in June 2022. How many units of the product would have to be sold to maintain an operating income of P20,000? Assume that ABB plans to increase the selling price of Product Y by 10% in June 2022. How many units of the product would have to be sold to earn a net income of P48,000? ABB is subject to 25% corporate income tax.
A6) Finance XYZ is a retailer and sells 179,000 units per year. It purchases from a single supplier. Fixed costs per order are $868 and carrying cost is $11 per unit. How many units should XYZ purchase per order? That is, what is the Economic Order Quantity? Enter your answer rounded off to two decimal points. Margin for error: +/- 1
Mazon Inc. plans to sell 7,000 units each quarter next year. During the first two quarters each unit will sell for OMR12; during the last two quarters the sales price will increase OMR1.50 per unit. What is Mazon's estimated sales revenue for next year? Select one: a. OMR 397,000 b. OMR 357,000 c. OMR 378,000 d. OMR 336,000
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BBB Company reported the results from sales of 5,000 units of Product Y for April 2022. See image.Assume that BBB plans to increase the selling price of Product Y by 10% in June 2022. How many units of the product would have to be sold to maintain an operating income of P20,000?
(Related to Checkpoint 13.1) (Calculating expected revenues) The owner of the Petreno Pharmaceutical Company is evaluating the expected annual sales for a new line of facial care products and estimates that there is a 63 percent chance that the product line will be extremely successful, in which case it will generate sales next year of 7.6 million. However, since the new product line has a unique appeal that will require substantial advertising by its manufacturer to gain consumer acceptance, there is a 37 percent chance that revenues for next year will be a modest 1.1 million. What is the expected level of revenues for the new product line? The expected total revenue for the new line of products is $ million. (Round to two decimal places.)
Sunrise Company sells 3, 650 frying pans per year. The owner has invested $80, 000 in the business and desires an 8% return on his investment (ROI = Net Income Investments). Product Costs VC $4.5 per pan FC $78,000 per year Selling and Administrative Costs VC $3.00 per pan FC $15,000 per year If Sunrise uses the income statement bottom-up forecasting to estimate revenue and absorption cost-based pricing, what is its selling price and markup percentage? A. 5.32% and $34.73 B. 34.25% and $34.73 C. 27.48% and $32.98 D. 363% and $34.73
the following sales forecast for the coming year, 2021. ratio as reflected in the estimates of the sales forecast. electronic typewriters. The company's market research department prepared The Sonia Company has two product lines, high-speed printers and Electronic Typewriters High-speed Printers 40,000 170,000 10% 25% P3,000 Sales price per unit P5,000 The sales force submitted the following estimates: Electronic Typewriters High-speed Printers Luzon 3,600 2,400 Visayas Mindanao 8,400 3,000 6,000 3,600 Total 15,000 12,000 To establish an acceptable forecast, the budget director averages the two ostimates. The resulting forecast is then broken down by territories in the same retio as reflected in the estimates of the sales forecast, REQUIRED: 1. Prepare a sales budget by sales territory and by product lines for the year 2021. Use the following format: Sonia Company Sales Budget For the Year Ending Dec. 31, 2021 Electronic Typewriters High-speed Printers Units Amount Units Amount Luzon…
A company is making plans for next year, using cost-volume-profit analysis as its planning tool. Next year's sales data about its product are as follows Selling price P60 Variable manufacturing costs per unit 22.50 Variable selling and administrative costs 4.5 Fixed operating costs (60% is manufacturing costs) P159,500 Income tax rate 30% How much should sales be next year if the company wants to earn profit after tax of P23,100, the same amount that it earned last year?
Vandenberg Inc., produces and sells two products; a celling fan and a table fan.Vandenberg plans to sell 30,000 ceiling fans and 70,000 table fans in the coming year.Product price and cost information includes; Common fixed selling and ad,inistrative expenses total $85,000. Required: 1. What is the sales mix estimated for the next year (calculated to the lowest whole number for each product)? 2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans.How many ceiling fans and table fans are sold at break-even? 3. Prepare a contribution-margin based income statement for Vandenberg,Inc.,based on the unit sales calculated in Requirement 2. 4. What if Vandenberg,Inc.,wanted to earn operating income equal to $14,000? calculate the number of ceiling fans and table fans that must be sold to earn this level of operating income.(hint;Remeber to form a package of ceiling fans and table fans based on the sales mix and to first calculate the number of packages to…
Warner clothing is considering the introudciton fo a new baseball cap for sales by local vendors. The comapny has collected the following price and cost characteristics. A. What number must Warner sell per month to break even? B. What number must Warner sell per month to make an operating profit of $30,000?

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