Question

Larson, Inc., manufactures backpacks. Last year, it sold 99,000 of its basic model for $15 per...

Larson, Inc., manufactures backpacks. Last year, it sold 99,000 of its basic model for $15 per unit. The company estimates that this volume represents a 30 percent share of the current market. The market is expected to increase by 15 percent next year. Marketing specialists have determined that as a result of new competition, the company’s market share will fall to 25 percent (of this larger market). Due to changes in prices, the new price for the backpacks will be $12 per unit. This new price is expected to be in line with the competition and have no effect on the volume estimates. Required: Estimate Larson’s sales revenues from this model of backpack for the coming year.

Offenbach & Son has just made its sales forecasts and its marketing department estimates that the company will sell 219,000 units during the coming year. In the past, management has maintained inventories of finished goods at approximately one month’s sales. The inventory at the start of the budget period is 14,700 units. Sales occur evenly throughout the year.

Required:

Estimate the production level required for the coming year to meet these objectives

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Larson, Inc., manufactures backpacks. Last year, it sold 108,500 of its basic model for $20 per...
Larson, Inc., manufactures backpacks. Last year, it sold 108,500 of its basic model for $20 per unit. The company estimates that this volume represents a 35 percent share of the current market. The market is expected to increase by 20 percent next year. Marketing specialists have determined that as a result of new competition, the company’s market share will fall to 30 percent (of this larger market). Due to changes in prices, the new price for the backpacks will be...
CollegePak Company produced and sold 79,000 backpacks during the year just ended at an average price...
CollegePak Company produced and sold 79,000 backpacks during the year just ended at an average price of $39 per unit. Variable manufacturing costs were $16.50 per unit, and variable marketing costs were $3.78 per unit sold. Fixed costs amounted to $549,000 for manufacturing and $223,200 for marketing. There was no year-end work-in-process inventory. (Ignore income taxes.) Required: Compute CollegePak’s break-even point in sales dollars for the year. (Do not round intermediate calculations. Round your final answer up to the nearest...
Last year Minden Company introduced a new product and sold 25,700 units of it at a...
Last year Minden Company introduced a new product and sold 25,700 units of it at a price of $96 per unit. The product's variable expenses are $66 per unit and its fixed expenses are $833,100 per year. Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break-even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this...
Luxvano Co. produced and sold 65,000 units during the year at an average price of $20...
Luxvano Co. produced and sold 65,000 units during the year at an average price of $20 per unit. Variable manufacturing costs were $9 per unit, and variable marketing costs were $3 per unit sold. Fixed costs amounted to $220,000 for manufacturing and $80,000 for marketing. There was no year-end work-in-process inventory. Assume the income tax rate of 40%. d. Compute the sales units required to earn a net income (income after taxes) of $120,000 during the year. e. If Luxvano’s...
Last year Minden Company introduced a new product and sold 25,700 units of it at a...
Last year Minden Company introduced a new product and sold 25,700 units of it at a price of $94 per unit. The product's variable expenses are $64 per unit and its fixed expenses are $838,800 per year. Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break-even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this...
Luxvano Co. produced and sold 65,000 units during the year at an average price of $20...
Luxvano Co. produced and sold 65,000 units during the year at an average price of $20 per unit. Variable manufacturing costs were $9 per unit, and variable marketing costs were $3 per unit sold. Fixed costs amounted to $220,000 for manufacturing and $80,000 for marketing. There was no year-end work-in-process inventory. Assume the income tax rate of 40%. REQUIRED: (Show your detailed computations!) a. Compute Luxvano’s break-even point in sales dollars for the year. b. Compute the margin of safety...
Alger Inc. manufactures six models of leaf blowers and weed eaters. Alger's budgeting team is finalizing...
Alger Inc. manufactures six models of leaf blowers and weed eaters. Alger's budgeting team is finalizing the sales budget for the coming year. Sales in units and dollars for last year follow: Product Number Sold Price ($) Revenue LB-1 14,700 32 $ 470,400 LB-2 18,000 20 360,000 WE-6 25,200 15 378,000 WE-7 16,200 10 162,000 WE-8 6,900 18 124,200 WE-9 4,000 22 88,000 Total $1,582,600 In looking over the previous year's sales figures, Alger's sales budgeting team recalled the following:...
Sales Budget Alger Inc. manufactures six models of leaf blowers and weed eaters. Alger's budgeting team...
Sales Budget Alger Inc. manufactures six models of leaf blowers and weed eaters. Alger's budgeting team is finalizing the sales budget for the coming year. Sales in units and dollars for last year follow: Product Number Sold Price ($) Revenue LB-1 14,700 32 $ 470,400 LB-2 18,000 20 360,000 WE-6 25,200 15 378,000 WE-7 16,200 10 162,000 WE-8 6,900 18 124,200 WE-9 4,000 22 88,000 Total $1,582,600 In looking over the previous year's sales figures, Alger's sales budgeting team recalled...
Sales Budget Alger Inc. manufactures six models of leaf blowers and weed eaters. Alger's budgeting team...
Sales Budget Alger Inc. manufactures six models of leaf blowers and weed eaters. Alger's budgeting team is finalizing the sales budget for the coming year. Sales in units and dollars for last year follow: Product Number Sold Price ($) Revenue LB-1 14,700 32 $ 470,400 LB-2 18,000 20 360,000 WE-6 25,200 15 378,000 WE-7 16,200 10 162,000 WE-8 6,900 18 124,200 WE-9 4,000 22 88,000 Total $1,582,600 In looking over the previous year's sales figures, Alger's sales budgeting team recalled...
Alger Inc. manufactures six models of leaf blowers and weed eaters. Alger’s budgeting team is finalizing...
Alger Inc. manufactures six models of leaf blowers and weed eaters. Alger’s budgeting team is finalizing the sales budget for the coming year. Sales in units and dollars for last year follow: Product Number Sold Price ($) Revenue LB-1 14,700 32 $ 470,400 LB-2 18,000 20 360,000 WE-6 25,200 15 378,000 WE-7 16,200 10 162,000 WE-8 6,900 18 124,200 WE-9 4,000 22 88,000 Total $1,582,600 In looking over the previous year’s sales figures, Alger’s sales budgeting team recalled the following:...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT