Compute predicted operating income for Procter and Gamble

Assignment Help Accounting Basics

Reference no: EM131815742

Question: 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 2011 income statement showed the following (in millions):

171_Net sales.png

Suppose that the cost of products sold is the only variable cost; selling, general, and administrative expenses are fixed with respect to sales. Suppose Procter & Gamble has a 10% decrease in sales next year and there is no change in costs except for decreases associated with the lower volume of sales. Compute the predicted operating income for Procter & Gamble and its percentage decrease. Explain why the percentage decrease in income differs from the percentage decrease in sales.

Reference no: EM131815742

Questions Cloud

Potential risk of sexual harassment conduct : What should schools (colleges or universities) do to prevent and manage the potential risk of sexual harassment conduct by a coach towards

Describe a fear or phobia that you possess : Describe a fear or phobia that you possess, and that was learned through classical conditioning. If you are among the "fearless," have a friend share a fear.

What will you have at the end of year on the investment : What will you have at the end of year 7 if you can earn 5% per year on the investment? SHOW all work using TVM buttons on the TI BAII Plus Calculator

Five forces of competition model to determine : From the e-Activity, analyze the industry you selected using the Five Forces of Competition Model to determine the impact of each of the five forces.

Compute predicted operating income for Procter and Gamble : Suppose that the cost of products sold is the only variable cost; selling, general, and administrative expenses are fixed with respect to sales.

Exempt from the flsa requirements : Are professional athletes and coaches considered exempt from the FLSA requirements? If yes, why?

How many times did you come and see me during office hours : How do you study? How did you study? How many times did you come and see me during office hours or virtually? How many study sessions did you attend?

What does this information tell you about your company : most recent three years from your selected company's Cash Flow Statement. What does this information tell you about your company

Explain the material and labour variances : Explain one reason for each of the material and labour variances

User Account

All Pages