Determine what firm additional profit contribution from sale

Assignment Help Financial Accounting
Reference no: EM132755683

Problem 1: BRLM Company is planning to relax its credit standards to boost sales. As a result, sales are expected to increase 16 percent from 3,000 units per year to 3,480 units per year. The average collection period is expected to increase to 40 days from 30 days and bad debts are expected to double the current 1.5 percent level. The price per unit is P4,250, the variable cost per unit is P3,060. The firm's required return on investment is 20 percent. What is the firm's additional profit contribution from sales under the proposed relaxation of credit standards?

Option 1: 428,400

Option 2: 571,200

Option 3: 4,379,000

Option 4: 142,800

Reference no: EM132755683

Questions Cloud

Compute becker manufacturing overhead budget for june : Compute Becker's manufacturing overhead budget for May and June. The company's variable overhead is $2.50 per unit produced and its fixed overhead is $3,000.
What balance of allowance for doubtful account at december : Customer accounts written off as uncollectible during 2019 30,000. What is the balance of allowance for doubtful account at December 31,2019
What will be the total amount credited to capital account : What will be the total amount credited to the Capital account of each partner when the Income Summary account is closed
What is the fitted regression model : What is the fitted regression model? What is the slope? What does the slope tell us? Is the slope significant?
Determine what firm additional profit contribution from sale : The average collection period is expected, What is the firm's additional profit contribution from sales under the proposed relaxation of credit standards?
Manufacturers play in determining retailer success : Discuss the role that manufacturers play in determining a retailer's success.
Define and describe the principles of ethical leadership : Define and describe the principles of ethical leadership. Which two of the five principles covered in Chapter 16 do you think are the most important, and why?
Find what cost of marginal investment in accounts receivable : The average collection period is expected to increase to 40 days. What is the cost of marginal investments in accounts receivable under the proposed plan?
What is the net present value of the investment : The system lasts for 25 years, after which time, its value is zero. What is the net present value of the investment at 10%? At 5%

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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