MBI Inc. had sales of $41 million for fiscal 2019. The company's gross profit ratio for that year was 22%. Required: a. Calculate the gross profit and cost of goods sold for MBI for fiscal 2019. (Enter your answers in millions rounded to 2 decimal places. (i.e., 5,500,000 should be entered as 5.50)) Gross profit Cost of goods sold million million b. Assume that a new product is developed and that it will cost $480 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 2019. (Do not round intermediate calculations. Enter your answer in dollars rounded to 2 decimal places.) Selling price

MBI Inc. had sales of $41 million for fiscal 2019. The company's gross profit ratio for that year was 22%. Required: a. Calculate the gross profit and cost of goods sold for MBI for fiscal 2019. (Enter your answers in millions rounded to 2 decimal places. (i.e., 5,500,000 should be entered as 5.50)) Gross profit Cost of goods sold million million b. Assume that a new product is developed and that it will cost $480 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 2019. (Do not round intermediate calculations. Enter your answer in dollars rounded to 2 decimal places.) Selling price

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...

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