Compute volume in units and dollar sales level

Assignment Help Basic Computer Science
Reference no: EM133295496

Argentina Partners is concerned about the possible effects of inflation on its operations. Presently, the company sells 74,000 units for $40 per unit. The variable production costs are $17, and fixed costs amount to $840,000. Production engineers have advised management that they expect unit labor costs to rise by 15 percent and unit materials costs to rise by 10 percent in the coming year. Of the $17 variable costs, 50 percent are from labor and 25 percent are from materials. Variable overhead costs are expected to increase by 20 percent. Sales prices cannot increase more than 10 percent. It is also expected that fixed costs will rise by 10 percent as a result of increased taxes and other miscellaneous fixed charges.

The company wishes to maintain the same level of profit in real dollar terms. It is expected that to accomplish this objective, profits must increase by 11 percent during the year.

1. Compute the volume in units and the dollar sales level necessary to maintain the present profit level, assuming that the maximum price increase is implemented.

2. Compute the volume of sales and the dollar sales level necessary to provide the 11 percent increase in profits, assuming that the maximum price increase is implemented.

Reference no: EM133295496

Questions Cloud

Make creative autobiography : Make a creative Autobiography as a college student-a primary source. One example of Autobiography is Jose Rizal.
About systemic issue in childcare center : Describe how you have/ would respond to the concern of a family, discuss how you clarified the key issues, collaborated, confirmed next steps
The high price of multi- tasking by willingham daniel : The High Price of Multi- tasking by Willingham Daniel T. Discuss the context of your selected article, the author's purpose, and the style and tone.
Define the workflow-planning the logical sequence of tasks : At first, it is important to capture all the necessary details. After that, it is essential to define the workflow, planning the logical sequence of tasks.
Compute volume in units and dollar sales level : Compute the volume in units and the dollar sales level necessary to maintain the present profit level, assuming that the maximum price increase is implemented.
Drawbacks of universities using social media to communicate : What are the advantages and drawbacks of universities using social media to communicate with various stakeholders-students, potential students.
Briefly explain the background of the case : Briefly explain the background of the case Why wasn't the contract effective in avoiding a dispute What went wrong in this case?
Memory overcommitment is based on memory agility : Memory overcommitment is based on the memory agility that much less physical memory is used than the amount allocated to the virtual machines.
Write own philosophy of customer service : Go to pages 148 in the textbook to study the Challenge to "Write Your Own Philosophy of Customer Service."

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Personal concerns about the digital world

What uses do you think are ethical, promote the well-being of all individuals, and what uses to find unethical, not necessarily illegal, but unethical.

  Correct the impact of lagging leadership creativity

This journal article focus on the how positive team culture can correct the impact of lagging leadership creativity.

  Write a recursive method that will calculate nth fibonacci

Fibonacci numbers are really fascinating and turn up in many unexpected places. They are also a good example of recursion. write a recursive method that will calculate the nth Fibonacci number. Now write a method that will do it iteratively.

  Transmitting confidential information

For this Discussion, consider the following scenarios that involve transmitting confidential information:

  Discuss the team dynamics for highly effective

Discuss the team dynamics for a highly effective or ineffective team of which you were a member. Can you explain why the team performed so well or so poorly?

  Should the item be purchased or manufactured

Should the item be purchased or manufactured? Also, what are the total costs of options A and B. Should the item be purchased or manufactured? What is the total cost of Option A and total cost of Option B? Should the item be purchased or manufactured..

  Discuss guest-hopping attacks

Define and discuss the data wiping process. Define and discuss hyperjacking attacks. Define and discuss guest-hopping attacks.

  What is the dark web

What is the Dark Web? How is it used by criminals? How can it be used in a positive way? How can be used by law enforcement and the intelligence services.

  Principal components of the balance of payments

Explain the two principal components of the Balance of Payments. Explain the "Washington Consensus" with at least three examples

  Dynabase tool has forecast its total funds requirement

Dynabase Tool has forecast its total funds requirement for the coming year as shown in the following table:

  Application that prompts for and reads a double value

Write an application that prompts for and reads a double value representing a monetary amount.

  Write a function to represent the daily cost of payroll

Write inequalities to represent the number of day-shift workers, the number of night-shift workers, and the total number of workers needed.

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