Reference no: EM132477191
Question - Jordan and Taylor are beginning to understand break-even analysis.
Selling price to Yumminess at $10 per tin. The cost is $8 per tin, which includes $6 of direct material and $1.50 of direct labor. Annual manufacturing overhead is estimated at $100,000 for the expected sales of 200,000 tins. Operating expenses are projected to be $80,000 annually.
After looking over the costs for manufacturing overhead and operating expenses, you approximate that 85% of manufacturing overhead and 20% of operating expenses are variable costs.
They are now discussing options with adjustments to costs and sales. As long as they keep bringing brownies, you keep turning out numbers.
Required -
1. Jordan and Taylor are considering an advertising campaign for $40,000 annually. They expect this to increase sales by 5%. What would be the new net income?
For the questions that ask for a monthly analysis, total sales should be based only on the 500,000 tins.
2. Yumminess wants to feature Chocolate Attack Brownies as a monthly special. The predicted sales volume is 50,000 tins. Yumminess wants Jordan and Taylor to cut their selling pricing by 10%, citing that the volume will more than make up the difference. What will be the break-even point in tins during this sale?
3. Yumminess wants to feature Chocolate Attack Brownies as a monthly special. The predicted sales volume is 50,000 tins. Yumminess wants Jordan and Taylor to cut their selling pricing by 10%, citing that the volume will more than make up the difference. What net income can Jordan and Taylor expect during this offer?
|
Noble action-sacred call-desire
: Explain whether or not you think Siddhartha Gautama's quest to find enlightenment falls under the category of noble action, sacred call, or desire
|
|
Why would an organization give employees incentives plans
: Why would an organization give employees incentives plans? What are benefits and challenges of this practice? How can, or how should, an organization today.
|
|
What is Woolard total depreciation deduction for the year
: Asset Placed In Service Basis Office furniture (used) March 20 $1,183,000. If Woolard elects $50,000 of §179, what is Woolard's total depreciation deduction
|
|
Calculate the missing amount for each year
: Determine WHAT DOES THIS INFORMATION INDICATE ABOUT THE COMPANY? CALCULATE THE MISSING AMOUNT FOR EACH YEAR?
|
|
What net income can Jordan and Taylor expect
: Yumminess wants to feature Chocolate Attack Brownies as a monthly special. The predicted sales volume is 50,000 tins. What net income Jordan and Taylor expect
|
|
What is the maximum total depreciation
: What is the maximum total depreciation, including §179 expense, that AMP may deduct in 2019 on the assets it placed in service in 2019
|
|
How reward should be designed to reduce agency problems
: Analyze how reward should be designed to reduce agency problems. Evaluate the role for human resources in developing and managing a reward system.
|
|
Alternative energies and their environmental impacts
: Need an annotated bibliography on subtopic of alternative energy - This topic will help in exploring the environmental impacts of the generation of alternative
|
|
Describe thinking and critical thinking skills
: Describe thinking and critical thinking skills. Describe ways in which you think you can improve your personal thought processes.
|