Compute the expected new net income

Reference no: EM13147043

The vice-president of marketing and the director of human resources have developed a proposal whereby the company would compensate the sales force on a strictly commission basis using 20% of net sales. Given the increased incentive, they expect net sales to increase by 15%. As a result, they estimate that gross profit will increase by $37,605 and operating expenses by $62,595. Compute the expected new net income. (Hint: You do not need to prepare an income statement).

Reference no: EM13147043

Questions Cloud

Effect on the company overall net operating income : Further investigation has revealed that $34,000 of the fixed manufacturing expenses and $20,000 of the fixed selling and administrative expenses are avoidable if product R97C is discontinued. What would be the effect on the company's overall net o..

Choose the appropriate units using the drop-down list : Choose the appropriate units using the drop-down list. energy cost of playing soccor is 7.0.

Use of a subsidiary ledger and allowance account : Describe how accounts receivable arise and how they are accounted for, including the use of a subsidiary ledger and an allowance account.

Find the molecular weight of the unknown compound : Find the molality of the solution. Find the molecular weight of the unknown compound please show steps

Compute the expected new net income : As a result, they estimate that gross profit will increase by $37,605 and operating expenses by $62,595. Compute the expected new net income. (Hint: You do not need to prepare an income statement).

Explain the freezing point of pure carbon tetrachloride : When 5.0 g of an unknown compound is dissolved in 200.0 g of carbon tetrachloride, CCl4, the freezing point of the solution is -31.8 degC. The freezing point of pure carbon tetrachloride is -22.3degC

Approximately how many packets of crisps are equivalent : For an average low activity 5-year-old boy approximately how many packets of crisps are equivalent to one day's energy needs? You should give your answer to the nearest whole number. You will need to refer to data in the Tables found in the course..

Problem related to direct-financing lease : Brick's incremental borrowing rate is 10%,however it knows that Gold Star's implicit interest rate is 8%.What journal entry would Gold Star make at January 2,2011 assuming this is direct-financing lease?

Calculate kp for this reaction : Nitrosyl chloride (NOCl) decomposes at elevated temperatures according to the equation 2NOCl(g) ->2NO(g) + Cl2(g). Calculate Kp for this reaction at 680°C. (For this reaction ΔH° = 81.2 kJ/mol, ΔS° = 128 J/K·mol)

User Account

All Pages