Question

A company has variable costs that are 3/8 the value of their sales revenues. Total net...

A company has variable costs that are 3/8 the value of their sales revenues. Total net income for the most recent period was a profit of $123 400 and sales were $400 000. The company has started a new marketing campaign that they hope will increase sales, but it will require additional advertising of $11 200. How many sales dollars does the company have to generate in order to remain at the same level of profitability as before the new ad campaign?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
4. A company that makes optical computer input devices has calculated their revenue and costs as...
4. A company that makes optical computer input devices has calculated their revenue and costs as follows for the most recent fiscal period: Sales ​$522 000 Costs: ​Fixed Costs​ $145 000 ​Variable Costs ​208 800 Total Costs ​353 800 Net Income ​$168 200 ​What is the break-even point in sales dollars? 5. A company that makes environmental measuring devices has calculated their revenue and costs as follows for the most recent fiscal period: Sales ​$750 000 Costs: ​Fixed Costs​ $200...
A retail company has started a new advertising campaign in order to increase sales. In past,...
A retail company has started a new advertising campaign in order to increase sales. In past, the mean spending in both the 18–35 and 35+ age groups was at most $70.00. a. Formulate a hypothesis test to determine if the mean spending has statistically increased to more than $70.00. b. After the new advertising campaign was launched, a marketing study found that the sample mean spending for 300 respondents in the 18–35 age group was $78.56, with a sample standard...
part 1) A construction company has total revenues of $650,000; total construction costs of $509,000; and...
part 1) A construction company has total revenues of $650,000; total construction costs of $509,000; and general overhead costs of $65,000 for the year. Determine the company's total profit for the year and the percentage of the construction revenues that become profits. Group of answer choices $109,000; 10% $141,000; 21.6% $76,000; 11.69% None of the available answers part 2) A construction company estimates it's fixed overhead to be $35,000, sales expenses of 19%, and direct costs of 55%. In order...
During the most recent fiscal period, Cherokee Company had sales of $80,000. Variable costs are 20%...
During the most recent fiscal period, Cherokee Company had sales of $80,000. Variable costs are 20% of sales and fixed costs amounted to $48,000 for the year. Calculate the following in Excel: a. Contribution margin ratio b. Operating leverage c. Break-even sales in dollars d. Using operating leverage, calculate the operating profit if sales increase by 20% next year.
Eagle Company makes the MusicFinder, a sophisticated satellite radio. Eagle has experienced a steady growth in...
Eagle Company makes the MusicFinder, a sophisticated satellite radio. Eagle has experienced a steady growth in sales for the past five years. However, Ms. Luray, Eagle's CEO, believes that to maintain the company's present growth will require an aggressive advertising campaign next year. To prepare for the campaign, the company's accountant, Mr. Bednarik, has prepared and presented to Ms. Luray the following data for the current year, year 1: Variable costs: Direct labor (per unit) $ 87 Direct materials (per...
Oak Cabinet Company has fixed costs of $265,000, sells its units for $66, and has variable...
Oak Cabinet Company has fixed costs of $265,000, sells its units for $66, and has variable costs of $36 per unit. a. Compute the break-even point. b. The CFO comes up with a new plan to cut fixed costs to $200,000. However, more labor will now be required, which will increase variable costs per unit to $39. The sales price will remain at $66. What is the new break-even point? c. Under the new plan, what is likely to happen...
. Assume that the CDE Company has yearly Fixed costs of $30,000 and its Variable costs...
. Assume that the CDE Company has yearly Fixed costs of $30,000 and its Variable costs are $30,000, which are 60% of its Sales. Calculate: [Use ONLY formula for your calculations. Do NOT use algebra] Question: Its profit or loss when its total sales are $110,000.      b. The sales level (dollars) required to break-even.      c. The sales needed to make a profit of $35,000. 2. ABC Company manufactures and distributes Product A. An extract from the 20X5 statement...
company has variable costs of $34.50, total fixed costs of $21,700,000 and plans to sell its...
company has variable costs of $34.50, total fixed costs of $21,700,000 and plans to sell its product for $45.00. In 2018 it sold 2,400,000 units of product. Required: e) what is the operating leverage in 2018; f) the production manager wants to automate production and lower variable costs by $3 per unit and spend an additional $4,500,000 fixed costs per year- is this more profitable? g) The sales manager wants to drop prices by $2.50 per unit and spend an...
American Airlines has $100 variable cost on $500 coach class three-week advance-purchase seats from New York...
American Airlines has $100 variable cost on $500 coach class three-week advance-purchase seats from New York to Florida. The company is quite conscious of their need to sustain cumulative operating profits in order to cover their very high fixed costs of pilot crews, capital equipment leases, and hub airports. a)(8 points) The product team proposes to discount these NY-Fla routes with a 5% price cut to $475.Variable costs remain $100. What “break point” percentage increase in unit sales of American...
A Cookie Company has negotiated to introduce a new cookie for 6 years. The cookie would...
A Cookie Company has negotiated to introduce a new cookie for 6 years. The cookie would be purchased in boxes from a manufacturer for $100 per box and sold to supermarkets for $200 per box. Annual sales is expected to be 5 000 boxes. The estimated annual cash expenses to sell the new product would be $180,000. The cost of the equipment to package the cookies is $300 000, and the working capital needed is $400 000. After 5 years,...