Hacker aggregates mines and distributes various types of

Assignment Help Accounting Basics

Reference no: EM13590814

Hacker Aggregates mines and distributes various types of rocks. Most of the company's rock is sold to contractors who use the product in highway construction projects. Treva Hacker, company president, believes that the company needs to advertise to increase sales. She has proposed a plan to the other managers that Hacker Aggregates spend $100,000 on a targeted advertising campaign. The company currently sells 25,000 tons of aggregate for total revenue of $5,000,000. Other data related to the company's production and operational costs follow: Direct labor: $1,500,000 Variable Production Overhead: 200,000 Fixed Production Overhead: 350,000 Selling and administrative expenses: Variable 50,000 Fixed 300,000 A. Compute the break-even point in units (i.e., tons) for Hacker Aggregates. tons B. Compute the contribution margin ratio for Hacker Aggregates. Enter as a decimal and round to 2 places.

If Treva decides to spend $100,000 on advertising and the company expects the advertising to increase sales by $200,000, should the company increase the advertising?If the company increases the advertising, the contribution margin will increase by $??? and net income will increase by $?

Reference no: EM13590814

Questions Cloud

Target corporation a major us retailer reported the : target corporation a major u.s. retailer reported the following amounts in the asset section of its balance sheets for

An employer provides all of his employees with group term : an employer provides all of his employees with group term life insurance protection. if melba an employee would

Lily began business on january 1 2009 with an investment of : lily company had the following assets and liabilities on the dates indicated december 31 total assets total

The diagonal of a rectangle is 25 meters long and makes an : q1 the diagonal of a rectangle is 25 meters long and makes an angle of 36 degree with one side of the rectangle. find

Hacker aggregates mines and distributes various types of : hacker aggregates mines and distributes various types of rocks. most of the companys rock is sold to contractors who

Prepare the adjusting entry on january 31 to adjust the : ricardo companys balance sheet reported the following information as of january 1 1998. accounts receivable 75800 less

The current price of a share of juice stock is 40 while the : the current price of a share of juice stock is 40. while the outlook for juice stock is uncertain at the end of the

Knowing that the carved head of lincoln at mt rushmore is : assume that lincoln was 6 13 feet tall and his head was frac34 ft. long. knowing that the carved head of lincoln at

His friend sam points out that this equation fails at one : for a class assignment andrew is trying to find a general equation for the nth derivative of fx 2xex and he comes up

User Account

All Pages