Compute predicted operating income for procter and gamble

Assignment Help Accounting Basics
Reference no: EM131498275

Discussion

CVP and Financial Statements for a Mega-Brand Company Procter & Gamble Company is a Cincinnati-based company that produces household products under brand names such as Gillette, Bounty, Crest, Folgers, and Tide. The company's 2006 income statement showed the following (in millions): Net sales $68,222 Costs of products sold 33,125 Selling, general, and administrative expense 21,848 Operating income $13,249 Suppose that the cost of products sold is the only variable cost; selling, general, and administrative expenses are fixed with respect to sales. Assume that Procter & Gamble had a 10% increase in sales in 2007 and that there was no change in costs except for increases associated with the higher volume of sales. Compute the predicted 2007 operating income for Procter & Gamble and its percentage increase. Explain why the percentage increase in income differs from the percentage increase in sales.

Reference no: EM131498275

Questions Cloud

Why could the given situation present ethical dilemmas : Do you believe managers and company officers should date lower level employees with less power and status? Why could this situation present ethical dilemmas?
Description of the project and a brief explanation : For each example, provide a brief description of the project and a brief explanation for each priority as to how it applies to the TRIPLE CONSTRAINT
Write essay about depression amongst college students : Write 2 page essays about depression amongst college students. Don't need an introduction just need body paragraphs and conclusion
Considering purchasing a new fleet of police cars : The City of Evanston is considering purchasing a new fleet of police cars. perform a cost benefit analysis on this proposed project over the four year period
Compute predicted operating income for procter and gamble : Assume that Procter & Gamble had a 10% increase in sales in 2007. Compute the predicted 2007 operating income for Procter & Gamble and its percentage increase.
The unexamined life is not worth living : What did Socrates mean when he said (as written by Plato), "The unexamined life is not worth living"?
Identify major trends in changing demographics of workforce : Identify moral tensions and/or conflicts that could lead to illegal and/ or unethical behavior associated with the changes you gave in given Question.
Business case and proposal for project selection : You work for Centervale Apparel, a large clothing manufacturing firm. Centervale Apparel has budgeted $9.7 million for new technology
What is the least amount you will sell your claim : Play-2-Win is the latest lottery game in your country, and you happen to be latest winner of $10.5 million. What is the least amount you will sell your claim

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd