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Currently, ABC Co. sells shirts for $20/ shirt. The marginal cost of production is currently is $9/ shirt with fixed costs set at $1,500/ year. The tax rate is 20%.
Problem 1: Assume that ABC Co. intends to expand operations and enters into a 10 year lease at $500/ month. It expects to increase the cost of its shirts to $18/ shirt and reduce marginal costs by $2/ shirt. It also expects to earn net income of $5/ shirt. What is the required dollar sales (round to the nearest dollar)?
Identify events as asset source asset use (ua) asset exchange or claims exchange Prepare an income statement, a statement of changes in stockholders equity, a balance sheet and a statement of cash flows.
Take a peek, try searching for some "experts" sharing their opinions in articles, discussions, or blogs related to your company of choice. What did you find
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Find What is the required percentage increase in sales from T-1 to compensate for lost margin from T-2, if total fixed costs can be reduced by $48,000?
Compute the controllable margin and the return on investment for 2010. Management is considering the following independent courses of action in 2011
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