User Account

All Pages

Should the company incur the additional advertising costs

Assignment Help Managerial Accounting
Reference no: EM132502585

Hudson co.

Contribution margin income statement

for year ended December 31, 2017

Sales (11,500 units at $225 each) $2,587,500

Variable costs (11.500 units at $180 each) $2,070,000

contribution margin $ 517,500

Fixed costs $360,000

Pretax income $157,500

Point 1: The marketing manager believes that increasing advertising costs by $123,000 in 2018 will increase the company's sales volume to 12,900 units. decide a forecasted contribution margin income statement for 2018 assuming the company incurs the additional advertising costs.

Sales = ???

Variable cost =??

Contribution margin = ???

Fixed costs = ???

Income (pretax) = ????

Question 1: Should the company incur the additional advertising costs = ?? ( yes or no?)

Reference no: EM132502585

Questions Cloud

How process improvements may lead to unfavorable variances : Find how process improvements may lead to unfavorable variances, and why evaluation in terms of variances may lead to overproduction.
Why a favorable variance may be unfavorable : Why a favorable variance may be unfavorable, how process improvements may lead to unfavorable variances, and why evaluation in terms of variances
Cia triads strengths and weaknesses : CIA triads strengths and weaknesses and compare and contrast it against any other one model
Explore risk and protective factors throughout the lifespan : Analyze how lifespan development and specific populations were affected by the event. Explore risk and protective factors throughout the lifespan.
Should the company incur the additional advertising costs : Should the company incur the additional advertising costs? The marketing manager believes that increasing advertising costs by $123,000 in 2018
Compute hudson co break -even sales dollars : Compute Hudson Co.'s contribution margin ratio. Compute Hudson Co.'s Break-even point in units. compute Hudson's co.'s break -even sales dollars
What role did race play during the rise of the blues : For this week's paper, choose from one of the following topics: What role did race play during the rise of the blues? Did the music industry help African.
Find should the company purchase the machine : Assume the company is considering investing in a new machine that will increase its fixed costs by $36,000 per year and decrease
Discuss negative externalities in view of the story of stuff : Discuss negative externalities in view of "The story of stuff." What is "Karl Polanyi's Paradox" (not his brother "Michael Polanyi's Paradox")? Give an example.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Trinco ltd trinidad amp tobago-tampt has been negotiating a

trinco ltd trinidad amp tobago-tampt has been negotiating a contract with a potential customer in jamaica. before the

  Is if an asset discarded when it is fully depreciated

If an asset is discarded when it is fully depreciated and has no residual? value, the business does not need to make a journal entry because the book value

  How many chair should folsom furniture request in each order

How many chairs should Folsom Furniture request in each order? How many times per year should Folsom Furniture order chairs?

  Question 1use the following information to answer this

question 1use the following information to answer this question.callaham corporation is a wholesaler that sells a

  Cost-volume-profit relationship

Explain how a shift in the sales mix among 3 products (even if the total sales remain the same,as planned, say $500,000 ) could result in both a higher break-even point and a lower net operating income.

  Preparing a vertical analysis of capitol assets

Preparing a vertical analysis of Capitol assets for 2018?, then vertical analysis for 2017. ?(Round the percent of total amounts to one decimal? place)

  What are the cash payments for interest and for taxes

Is the direct or indirect method used to report operating activities? What is the largest adjustment to net income in reconciling net income and cash flows from operations in the most recent year?

  Periodic method for inventory

You are provided with the following information for Najera Inc. for the month ended June 30, 2015. Najera uses the periodic method for inventory.

  Calculate the excess of cash available

Arakaki Inc. is working on its cash budget for January. Calculate the excess (deficiency) of cash available over disbursements for January

  Determine the cost of flash drives

Determine the cost of flash drives. Specify whether each of the above accounts would appear on the balance sheet or on the income statement at May 31

  Contrast static budget and flexible budget

Compare and contrast a static budget and the flexible budget in terms of both characteristics, timing and uses.

  Indicate the impact of the transaction

Indicate the impact of the transaction on the corresponding ratio (increase, decrease, or no effect).

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd