Reference no: EM1333373
Almo Company manufactures and sells adjustable canopies that attach to motor homes and trailers. For its 2010 budget, Almo estimates the following:
Selling Price $400
Variable cost per canopy $200
Annual fixed costs $100,000
Net income $240,000
Income tax rate 40%
The May income statement reported that sales were not meeting expectations. For the first five months of the year, only 350 units had been sold at the established price, with variable costs as planned, and it was clear that the net income projection for 2010 would not be reached unless some actions were taken. A management committee presented the following mutually exclusive alternatives to the president:
1. Reduce the selling price by $40. The sales organization forecasts that at this significantly reduce price, 2,700 units can be sold during the remainder of the year. Total fixed costs and variable cost per unit will stay as budgeted.
2. Lower variable cost per unit by $10 through the use of less-expensive direct materials and slightly modified manufacturing techniques. The selling price will also be reduced by $30, and sales of 2,200 units are expected for the remainder of the year.
3. Reduce fixed costs by $10,000 and lower the selling price by 5%. Variable cost per unit will be unchanged. Sales of 2,000 units are expected for the remainder of the year.
Required:
a) If no changes are made to the selling price or cost structure, determine the number of units that Almo Company must sell to achieve its net income objective.
b) Determine which alternative Almo should select to achieve its net income objective. Show your calculations.
|
Write down a sql statement to show warehouse
: Write down a SQL statement to display the SKU and Description of all items stored in the Seattle, Chicago or New Jersey warhouse. Do not use IN.
|
|
Risk-free covered interest arbitrage
: Critically discuss the transactions you would make to earn the risk-free covered interest arbitrage profits. How much profit would you expect to make?
|
|
Developmental theory in action
: Using the developmental theory/model as the most effective change theory/model for the home schooling family and life in the large family.
|
|
Maintaining an annotated bibliography
: Discuss briefly the advantages and disadvantages of maintaining an annotated bibliography of research data.
|
|
Alternative to achieve net income objective
: Determine which alternative Almo should select to achieve its net income objective. Show your calculations.
|
|
Civil rights movement
: How the civil rights movement has contributed to anti-discrimination efforts and the establishment of hate crime legislation and policy.
|
|
Note down a code to add two rows of data to the table
: Write down a code to add two rows of data to the table that was created using the command above. Ensure the default option on the LAST_DATE column is used in the second row added. Also, issue a command to permanently save the data to the table.
|
|
Factors which affecting portfolio returns
: As a manager of a large, broadly diversified portfolio of stocks and bonds you realized that changes in certain microeconomic variables might directly affect the performance of your portfolio.
|
|
Review of the literature
: During your review of the literature, you find that many others have studied your topic, will this tend to bolster your confidence that your topic is worth studying?
|