Colt industries had sales in 2008 of 6400000 and gross

Reference no: EM13591817

Colt Industries had sales in 2008 of $6,400,000 and gross profit of $1,100,000. Management is considering two alternative budget plans to increase its gross profit in 2009.

Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 5% from its 2008 level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 150,000 units.

At the end of 2008, Colt has 40,000 units of inventory on hand. If Plan A is accepted, the 2009 ending inventory should be equal to 5% of the 2009 sales. If Plan B is accepted, the ending inventory should be equal to 50,000 units. Each unit produced will cost $1.80 in direct labor, $1.25 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2009 should be $1,895,000.

Reference no: EM13591817

Questions Cloud

Jabar corporation a c corporation projects that it will : jabar corporation a c corporation projects that it will have taxable income of 255000 before incurring any lease

Assume mathew has to put tape on all edges of the posters : mathew needs to put 30 posters on the exhibit hall. ten of the posters are 24 inches by 39 inches the others are 18

Dividends on common stock during year 2 totaled 40 thousand : shull corporation income statement for the year ended december 31 year 2 dollars in thousands sales all on

Calculate the energy change in a system in which 5638 kj of : question calculate the energy change in a system in which 56.38 kj of heat is given off at 2.360 atm pressure and the

Colt industries had sales in 2008 of 6400000 and gross : colt industries had sales in 2008 of 6400000 and gross profit of 1100000. management is considering two alternative

How many moles of methane would need to be reacted in order : how many moles of methane would need to be reacted in order to heat 4.00 kg 1 gallon of water cs 4.18 jg-k from room

In year 1 gsl corps alternative minimum tax base was : in year 1 gsl corp.s alternative minimum tax base was 2000000 and its regular tax liability is 350000.a. what is gsls

Determine how much overhead would be applied to job f31i if : the management of rathburn corporation would like to investigate the possibility of basing its predetermined overhead

What is els corps current year ace adjustment assuming its : during the current year els corporation reported the following tax-related informationbull 5000 tax-exempt interest

User Account

All Pages