Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Your regular price is $50/unit, unit variable cost is $40/unit and fixed costs are $3,000 per month. Because of the recession, your sales have dropped to 200 units a month, so you are losing money. You are considering two options to increase sales: (1) reduce the price to $48/unit, or (2) run an advertising campaign, which will cost you $300 a month, but keep the price at $50/unit. In both scenarios, you estimate that sales will increase by 20%, from 200 to 240 units per month. Required: a) Compute total revenues, costs and profits under the status quo (original situation), and for each of the two new options.
b) Based on your results in (a), what should you do: do nothing, reduce the price or run the advertising campaign? (enter 1 for "do nothing", 2 for "reduce price", 3 for "advertising") 16 c) If you solved (a) and (b) correctly, you are still losing money despite choosing the best option. Should you shut down your business in the short term? Explain why or why not.
1. record the following journal entries.101 sold 5000 of tables on account the terms of payment are 115n30105 customer
Using the Dupont formula for rate of return on investment, determine the profit margin, investment turnover, and rate ofreturn on investment of the European Division, assuming that1,750,000 of assets have been invested in the europeanDivision.
what statement is true regarding post-retirement healthcare benefits? a the benefits can be easily projected and
presented below is information from quezada computers incorporated.july 1 sold 10000 of computers to robertson company
The CEO of your company has asked you to prepare a written presentation to be given at the next board of directors meeting on why different types of cost information need to be reported to support different managerial purposes and decisions. In a ..
jude has a nltcg of 25000 and a nstcl of 30000. what is judes 2011 capital loss deduction if judes adjusted gross
The owner's equity in a business amounted to $56,000 at the beginning of the year and $100,000 at the end of the year. The owner had made no additional investments and had withdrawn $19,000 during the year. The net income for the year amounted to ..
using the statement on auditing standard as your source list one standard you think relates directly to gathering audit
Torrie Company borrowed $50,000 on January 2, 2007. This amount plus accrued interest of 5% compounded annually will be repaid at the end of 3 years. What amount will Torrie repay at the end of the third year?
discuss the objectives for week three. your discussion should include the topics you feel comfortable with any topics
What client information is needed by auditors in creating lead schedules? Answer Interim statements prepared by the client for the company's 3rd quarter financial results.
a corporation has 25000 shares of 100 par value stock outstanding. if the corporation issues a 2-for-1 split or a 100
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd