How many dresses must they sell to earn a target profit

Assignment Help Accounting Basics
Reference no: EM132634238

Question - London Yarn is developing a new line of women's causal dresses. Estimated overhead costs are $400,000 while each dress will cost $10 in labor and materials. They want to know if they should continue with this project.

If the price is set at $90, how many dresses do they need to sell to breakeven?

If the price is set at $90, how many dresses do they need to sell to earn a target profit of 10%?

Given a price of $90, how many dresses must they sell to earn a target profit of 10% plus cover a $18,000 advertising budget?

If they sell 5,500 dresses, what price should they charge (maintaining the 10% target profit and advertising)?

Reference no: EM132634238

Questions Cloud

What would be the company new cm ratio : It would cause fixed expenses per year to double. If the new plant is built, what would be the company's new CM ratio and new break-even point in balls?
What is the most you would pay for this annuity right now : Question - How do calculate the most that should be paid for this annuity today? What is the most you would pay for this annuity right now
Security breach evaluation : Analyze the given case study on security breach. Recommend controls to avoid an enterprise security breach.
Demonstrate the equivalent units of production for materials : Demonstrate the equivalent units of production for materials and conversion. Prepare the journal entries to record all possible events in situation.
How many dresses must they sell to earn a target profit : Given a price of $90, how many dresses must they sell to earn a target profit of 10% plus cover a $18,000 advertising budget
Calculate pine tree manufacturing overhead for the year : Determine the number of completed units manufactured during the year. Calculate Pine Tree's manufacturing overhead for the year.
Why is an audit of financial statements conducted : Why is an audit of financial statements conducted? Discuss the factors that may make an audit necessary and potentially valuable for the company
Digital forensics tools and tech : Do a bit of research on the hearsay rule in legal proceedings. explain the hearsay rule and describe how it relates to the concept of an expert witness.
Simple diagram of common network protocols : Define and Describe the OSI Model and the TCP/IP Model. Describe and draw a simple diagram of the common network protocols.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute the corporation current earnings

Grand River Corporation reported taxable income of $800,000 in 20X3. Compute the corporation's current earnings and profits for 20X3

  Declared and distributed a 2 stock dividend to common

thomson corporationstockholders equitydecember 31 2007common stock 40000 authorized 25000 issued andoutstanding with

  How david proposal will affect the net cash flow

How David proposal will affect the net cash flow from operating activities? Explain and determine the value of the change

  Determine the transfer price for a yard of string

JayEo Ltd. manufactures string {only} for tennis racquets in their String Division. Determine the transfer price for a yard of string

  What is the effective dollar cost of the purchase

What is the effective dollar cost of the Swiss chocolate purchase in Exercise 7? Show your calculations

  Describe the advantages of a partnership

Advantages of a partnership include: Limited life. Mutual agency.

  On january 2 2011 kinnaird hospital purchased a 93250

on january 2 2011 kinnaird hospital purchased a 93250 special radiology scanner from faital inc. the scanner has a

  What would the net income be after adjusting for this error

A company's income statement for the year ended December 31, 2015 showed a net income of $83,600. What would the net income be after adjusting for this error

  How many units of the new product must rum sell

How many units of the new product must Rum sell during the next fiscal year in order to breakeven on the product

  Prepare a schedule of equivalent units for each cost element

Prepare a schedule of equivalent units for each cost element for the month of October using the weighted average method and also the first in, first out (FIFO) method

  Explain advantages of both accounting

Based on the video (link above), explain two (2) advantages and two (2) disadvantages in using both the cash and the accrual basis of accounting.

  Create and prepare a correct balance sheet

Create and Prepare a correct balance sheet. (List Assets in order of liquidity.) Determine the correct balance sheet for Sandhill Company.

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