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!
Question: Bernard McCoy of Laser Monks is introduced in the chapter's opening feature. Bernard currently sells his products through multiple outlets. Assume that he is considering two new selling options. Plan A. Laser Monks would begin selling additional products online directly to customers, which are only currently sold directly to outlet stores. These new online customers would use their credit cards. It currently has the capability of selling through its Website with no additional investment in hardware or software. Credit sales are expected to increase by $250,000 per year. Costs associated with this plan are: cost of these sales will be $135,500, credit card fees will be 4.75% of sales, and additional recordkeeping and shipping costs will be 6% of sales. These online sales will reduce the sales to stores by $35,000 because some customers will now purchase items online. Sales to stores have a 25% gross margin percentage. Plan B. LaserMonks would expand its market to more outlet stores. It would make additional credit sales of $500,000 to those stores. Costs associated with those sales are: cost of sales will be $375,000, additional recordkeeping and shipping will be 4% of sales, and uncollectible accounts will be 6.2% of sales.
Required: 1. Compute the additional annual net income or loss expected under (a) Plan A and (b) Plan B.
2. Should Laser Monks pursue either plan? Discuss both the financial and nonfinancial factors relevant to this decision.
Warren Buffet, one of the most successful investors in the world, made the following comment about his investment emphasis: "We simply attempt to be fearful.
1. How art and culture from previous civilizations influenced the piece 2. How the piece is related to artwork within the same civilization 3. How the piece still has meaning and value in modern-day cultures
crockett company had a beginning work in process inventory balance of 33067. during the year 77000 of direct materials
show all calculations and answers in organized way. adam beck chemical co. uses an average cost processing system. all
accounting is ingrained in our society and it is vital to our economic system in the u.s. how does this fit with your
A business is considering dropping a segment of its business. Describe the issues that the business should consider in making this decision.
Complete the network diagram by conducting a forward and backward pass through the network.Compute the early/late start time,early/late finish time,and slack time for each activity
Hanson Company borrowed $1,119,000 on March 1 on a 5-year, 13% note to help finance construction of the building.
the president of giraldi enterprises asks if you could indicate the impact certain transactions have on the following
during january 2010 sophisticated software inc. ssi a well-established and well-funded software company began
Star Services, Inc., a manufacturer of telescopes, began operations on October 1 of the current year. During this time, the company produced 50,000 units and sold 35,000 units at a sales price of $500 per unit. Cost information for this year is sh..
On July 20, Wolverine presents credit card receipts to its bank in the amount of $10,000; the collection charge is 4%. Prepare the journal entry on Wolverine's books on July 20, the date of deposit.
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