Reference no: EM132483092
Barnes Company reports the following operating results for the month of August: sales $325,000 (units 5,000); variable costs $212,000; and fixed costs $70,400. Management is considering the following independent courses of action to increase net income.
Compute the net income to be earned under each alternative.
1. Increase selling price by 10% with no change in total variable costs or sales volume.
Net Income $_____________
2. Reduce variable costs to 60% of sales.
Net income $_____________
3. Reduce fixed costs by $18,000.
Net income $_______________
Which course of action will produce the highest net income? Alternative 1, 2, or 3?
|
Determine the annual holding period rate of return
: Determine the annual holding period rate of return on a 10-year, $30,000 discount bond that you originally purchased for $13,200 and sold 7 years later for $22,
|
|
Determine the market price of a 15-year
: Determine the market price of a 15-year, 4.75%, $75,000 coupon bond when the market interest rate is 5.15%
|
|
What was JetBlue equity at the end of the year
: During the year, assets increased $486 million and liabilities increased $241 million. What was JetBlue's equity at the end of the year?
|
|
Compute the average historical growth rate
: Compute the average historical growth rate. (Do not Round your intermediate calculations. Round your answer to the nearest whole percent and use
|
|
Compute the net income to be earned
: Compute the net income to be earned under each alternative.
|
|
Determine the contribution margin in dollars
: Determine the contribution margin in dollars, per unit and as a ratio. (Round contribution margin and contribution margin per unit to 2 decimal places, e.g. 5.7
|
|
What is the unrecognized gain or unrecognized loss
: For Rausch what is the unrecognized gain or unrecognized loss as of 1-1-2017? defined benefit pension plan that specifies annual year end retirement payments.
|
|
Value of a call option with the same strike price
: To prevent arbitrage opportunities, what should be the value of a call option with the same strike price and expiration date?
|
|
How is the reported on a tax return
: Last year depreciation rate was 20% and the 2nd year rate is 32%. Ignore the application of any listed property limitations. How is the reported on tax return
|