How many extra units would West division need to sell

Assignment Help Managerial Accounting
Reference no: EM132902618

Question - Jenny is the president of the West division of X Inc. In December she reviews the division's projected accounting statements for the year. If she does nothing, she expects the division to have:

$5.04 million in revenue, $2.13 million in variable costs, and $1.11 million in fixed costs,  on volume of 96888 units. The division has $9.54 million in assets. X has a cost of capital of 11%.

Jenny will receive a $100,000 bonus if she can achieve an ROI of 23%. Clearly, she would like to do that. She considers the following schemes to earn the bonus.

First, West division could ship a lot of extra product to customers at year-end (called channel stuffing). Assume the extra products sell at the typical cost and have the typical variable cost. How many extra units would West division need to sell to reach the ROI target?

Reference no: EM132902618

Questions Cloud

Prepare the journal entries to record these transactions : 6/30 Student billed on June 10 pays the amount due to Quark. Prepare the journal entries to record these transactions
Discuss the best possible recommendation to Ms Davila : Based on the analysis made by your colleague and the flow of discussion between them, discuss the best possible recommendation to Ms. Davila
Compute the amount of assets liabilities : As of that date Johnson old business suppliers as follows: Island Gas Company $2,200. Compute the amount of assets liabilities
Quality management systems redesign : Determine characteristics that will be required to become a valuable team member of this project - Propose lean best practices, quality control tools
How many extra units would West division need to sell : Assume the extra products sell at the typical cost and have the typical variable cost. How many extra units would West division need to sell to reach ROI target
New role during the first six months : a) Assume you have been appointed as a tax accountant. Explain how you will establish yourself within the new role during the first six months.
Calculate the total debt : Buy Now - Pay Later loan that was used to purchase new furniture 18 months ago. Calculate the Total Debt including AND excluding the mortgage
What is managerial roles and tasks : What is Managerial roles and tasks, duties in the day-to-day activities that are inherently a part of the dynamic process?
Identifying goals and personal influences : Prepare a 3-4 page paper of 750 to 1000 words where you complete the following:

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Case study for annual report assignment

Case Study for Annual Report Assignment - company has had an overdraft for the last two months of the financial year

  Provide an example of the type of business or company

Provide an example of the type of business or company that would benefit from using a flexible budget. Provide support for your business selection

  What is the current net book value of the note

$20,000 is halfway through its six-month life. The initial discount on the note was $1,000. What is the current net book value of the note?

  How would managerial accounting tools help the user

If we could use these concepts in service and merchandising businesses, how would we go about doing so? How would managerial accounting tools help the user make decisions proactively?

  What is the per-unit production cost

How much fixed manufacturing overhead is treated as a period cost under variable costing? Absorption costing? What is the per-unit production cost

  Lm enterprises produces a single part for sale

1.LM Enterprises produces a single part for sale

  What is the cost per equivalent unit for conversion

The June 1 work in process inventory consisted of 4,900 units with $17,380 in materials cost and $14,620 in conversion cost. What is cost per equivalent unit

  Compute expected cash disbursement during august

Compute expected (budgeted) cash disbursement during August. Collections from the customer are normally 70%in the month of sale , 20%

  Given a company''s positive and negative cash flows

Given a company's positive and negative cash flows over years 0-5, and the interest rate on the project, what is the IRR and MIRR?

  What will the maximum variable cost of making need to be

Find what will the maximum variable cost of making need to be in order for DBS to still consider making the components in-house

  What is the concept of push down accounting

What is the concept of push down accounting and how it would impact the consolidation process?

  How to prepare journal entries to record the incurrence

How to Prepare journal entries to record the incurrence of production costs, completion of job number A26 and the shipment of 900 cuddly koalas?

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