The LOLA'S store presents the following information related to
your income and costs:
Sales Price .................................
The LOLA'S store presents the following information related to
your income and costs:
Sales Price .............................. $ 42
Invoice costs ........................... 22
Sales commissions ............... .. 6
Shipping .................................. 4
Advertising ........................... $ 60,000
Rent .................................... .. 30,000
.............................. .. 150,000
5. If management decides to eliminate commissions and increase
salaries to $ 230,000, what would be the new BEP.
6. If management decides to increase the price to $ 45, raise
the variable costs to $ 36, the fixed...
Last month you assumed the position of manager for a large car
dealership. The distinguishing feature...
Last month you assumed the position of manager for a large car
dealership. The distinguishing feature of this dealership is its
"no hassle' pricing strategy; prices (usually well below the
sticker price) are posted on the windows, and your sales staff has
a reputation for not negotiating with customers. Last year, your
company spent $2 million on advertisements to inform customers
about its “no hassle policy” and had overall sales revenue of $40
million. A recent study from an agency...
Kenmore Company manufactures two products. Both products have
the same sales? price, and the volume of...
Kenmore Company manufactures two products. Both products have
the same sales? price, and the volume of sales is equivalent.?
However, due to the difference in production? processes, Product A
has higher variable costs and Product B has higher fixed costs.
Management is considering dropping Product B because that product
line has an operating loss.
Kenmore Company
Income Statement
Month Ended June 30, 2018
Total
Product A
Product B
Net Sales Revenue
$170,000
$85,000
$85,000
Variable Costs
150,000
77,000
73,000
Contribution...
As a manager of a firm, you have estimated that the demand for
the product the...
As a manager of a firm, you have estimated that the demand for
the product the firm sells is $ Q D = 1,800 – 5 P – 0.25
I, where P is the price of a unit of the firm's product and I is
the average consumer income of the firm's customers. Currently, P =
$80 and I = $4,000.Based on this information, if you
decide to increase the price by 1%, then
a) Your total revenue from sales will...
Data concerning Ulwelling Corporation's single product appear
below:
Per Unit
Percent of
Sales
Selling price
$...
Data concerning Ulwelling Corporation's single product appear
below:
Per Unit
Percent of
Sales
Selling price
$
200
100%
Variable
expenses
46
23%
Contribution
margin
$
154
77%
Fixed expenses are $1,043,000 per month. The company is
currently selling 9,800 units per month.
The marketing manager would like to introduce sales commissions
as an incentive for the sales staff. The marketing manager has
proposed a commission of $11 per unit. In exchange, the sales staff
would accept an overall decrease in...
Data concerning Bazin Corporation's single product appear
below:
Per Unit
Percent of Sales
Selling price
$...
Data concerning Bazin Corporation's single product appear
below:
Per Unit
Percent of Sales
Selling price
$
100
100
%
Variable expenses
20
20
%
Contribution margin
$
80
80
%
Fixed expenses are $384,000 per month. The company is currently
selling 6,000 units per month. The marketing manager would like to
introduce sales commissions as an incentive for the sales staff.
The marketing manager has proposed a commission of $9 per unit. In
exchange, the sales staff would accept a...
?You have developed the following pro forma
income statement for your? corporation:
Sales
$
45,750,000
Variable...
?You have developed the following pro forma
income statement for your? corporation:
Sales
$
45,750,000
Variable costs
(22,800,000)
Revenue before fixed costs
$
22,950,000
Fixed costs
(9,200,000)
EBIT
$
13,750,000
Interest expense
(1,350,000)
Earnings before taxes
$
12,400,000
Taxes (50%)
(6,200,000)
Net income
$
6,200,000
It represents the most recent? year's operations, which ended
yesterday. Your supervisor in the? controller's office has just
handed you a memorandum asking for written responses to the
following?questions:
a.??If sales should increase by 25...
Suppose you are a salesperson and your company's CRM forecasts
that your quarterly sales will be...
Suppose you are a salesperson and your company's CRM forecasts
that your quarterly sales will be substantially under quota. You
call your best customers to increase sales, but no one is willing
to buy more.
Your boss says that it has been a bad quarter for all the
salespeople. It's so bad, in fact, that the vice president of sales
has authorized a 20 percent discount on new orders. The only
stipulation is that customers must take delivery prior to...
Suppose you are a salesperson and your company's CRM forecasts
that your quarterly sales will be...
Suppose you are a salesperson and your company's CRM forecasts
that your quarterly sales will be substantially under quota. You
call your best customers to increase sales, but no one is willing
to buy more.
Your boss says that it has been a bad quarter for all the
salespeople. It's so bad, in fact, that the vice president of sales
has authorized a 20 percent discount on new orders. The only
stipulation is that customers must take delivery prior to...