Explain the impact on profit

Assignment Help Accounting Basics
Reference no: EM132780043

Question: A retailer wants to put items on sale and wants to know the impact on profit if the selling price of those items are reduced by 25%. To assist the retailer, provide a detailed example of CVP analysis (similar to the one in your text) based on what you learned this week using the original sales price and then how do i do a "what if" analysis if the retailer sold 100 more items at the lower price. Do you think your analysis would show the same impact on profit for both the company's online and brick and mortar stores keeping in mind the idea of variable and fixed costs? Why or why not?

Reference no: EM132780043

Questions Cloud

Determine the book value per share : On January 1, 2017, Alpha Corporation had 50,000 shares of $10 par value common stock outstanding. On July 1, 2017, Alpha issued 50,000 additional shares.
How much was initially deposited : Paul Jefferson made a deposit into his savings account three years ago, and earned interest at an annual rate of eight percent. The deposit accumulated.
What amount today is equivalent to be received in four years : You are scheduled to be paid $10,000 in four years. What amount today is equivalent to the $10,000 to be received in four years assuming interest is compounded.
Journalize the transactions in proper form : You are presented with the following transactions for Oxfam Corporation for the month of January: Jan. 2 Issued $5,000 of common shares for cash.
Explain the impact on profit : A retailer wants to put items on sale and wants to know the impact on profit if the selling price of those items are reduced by 25%. To assist the retailer.
What is the role of the premium account in your answer : When a bond sells at a premium, is the periodic interest expense less than, equal to, or greater than the periodic interest payment? Why? Be specific.
Calculate the debt to equity ratio : Thomas is concerned about his company's ability to pay off its short-term debts. If he wants to know more about his company's liquidity, what should he do?
Does give cause the trial balance to be out of balance : When a general journal is used to record sales returns, the credit of the entry must be posted twice. Does this cause the trial balance to be out of balance?
Compute buffalo actual return on plan assets : For Buffalo Corporation, year-end plan assets were $2,006,000. At the beginning of the year, plan assets were $1,775,000. During the year, contributions.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine alpha company''s net cash flows

Use this information to determine Alpha Company's Net Cash Flows from Investing Activities

  Determine the number of shares

Determine for 2020 the number of shares to be used in calculating: 1. Basic earnings per share, 2. Diluted earnings per share

  Conduct a relevant cost analysis to determine

If Dr. Rahavy accepts this offer, he will no longer need the bookkeeper. Conduct a relevant cost analysis to determine

  Demonstrate accurate spelling, grammar, and punctuation

Today, companies must decide whether to sell their products directly to their customers via the Internet or to use more traditional methods of distribution.

  Discuss what amount of loss should twelve company report

A Company reported a net loss of $6 million for the year. What amount of loss should Twelve Company report on its income statement

  Compute home depots debt ratio

Compute Home Depot's debt ratio (assume competitors average a 60.0% debt ratio). (Round your answer to one decimal place.)

  What processes are indispensable to be performed

What processes are indispensable to be performed and what outcomes are required from these processes to achieve business objectives?

  How much will you owe at the end of the year

Question - You receive a credit card offer in the mail quoting you 19% interest compounded monthly. How much will you owe at the end of the year

  Is Sonja subject to the FBAR reporting requirement

In January 2019, Sonja deposited $20,000 in a bank in the Bahamas. Is Sonja subject to the FBAR reporting requirement? Explain

  Journalize the first note payment on december

On January 1, 2018, LeMay-Finn signed a $420,000, 7-year, 5% note. Journalize the first note payment on December 31, 2018

  Calculate Herbert gross income

He received dividends of $550. His luck was not all bad; in December, he won $1,500 in the lottery on a $5 ticket. Calculate Herbert's gross income

  What is the financial advantage

What is the financial advantage (disadvantage) in total (not per box) if Silven buys 105,000 boxes of tubes from the outside supplier

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