Projecting gross profit - the effects of volume versus pric

Reference no: EM1344258

Projecting gross profit: the effects of volume versus price. Suppose you are analyzing a firm that is successfully executing strategy that differentiates its products from those of its competitors.

Because of this strategy you project that next year the firms will generate 6.0% revenue growth from price increase and 3.0% revenue growth from sales volume increases. Assume that the firm production cost structure involves strictly variable cost.

Should you project that the firm gross profit will increase next year? If you project that the gross profit will increase is the increase a result of volume growth price growth or both? Should you project that the firm's gross profit margin will increase next years? If you project that the gross profit margin will increase is the increase a result of volume growth price growth or both?

Reference no: EM1344258

Questions Cloud

Evaluate average revenues per store : The Home Depot to evaluate average revenues per store, capital spending per new store, and ending inventory per store in 2008

Writing java code by using netbeans : Write a java code using netbeans for the following program. Write a program that asks the user to enter five test scores.

Acquisition talks of acme with jel and dbc : Acme has been in acquisition talks with 2 different European firms. JEL Industries is headquartered in country that is part of European Union while DBC Industries is headquartered in European country that doesn't belong to the Union and doesn't us..

Explain approach of the sherman anti-trust act : The world becomes a single market, some new approach must be developed to control the reach of the corporate oligopolies.

Projecting gross profit - the effects of volume versus pric : Projecting gross profit - the effects of volume versus price and Suppose you are analyzing a firm that is successfully executing strategy that differentiates its products from those of its competitors.

Acquisition cost and double-declining balance depreciation : Howard Company bought factory equipment with invoice price of $90,000. Other costs incurred were freight costs, $2,100; installation wiring and foundation, $2,200; material and labor costs in testing equipment, $700

Compare past and current management approaches : Describe how the company was managed in the past. Compare difference between management approaches in the past to those the organization currently uses.

Managing cyber crime to protect business : Provide a scenario of a cyber crime by way of example that will demonstrate to your business a situation that might occur.

Illustrate what is the relationship between the phillips : Illustrate what is the relationship between the Phillips curve, cumulative demand also cumulative provide.

User Account

All Pages