What will be the resulting percentage change in EBIT

Assignment Help Financial Accounting
Reference no: EM132951198

Question - The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $68.75. The variable cost per unit is $24.60, Poseidon Swim has average fixed costs per year of $6,791.

Assume that current level of sales is 355 units. What will be the resulting percentage change in EBIT if they expect units sold to changes by -1.9 percent?

Reference no: EM132951198

Questions Cloud

What are some recommendation of using cash : What are some recommendation of using Cash only in this pandemic?
Information service offered by specialist : ABC Corp. manufactures high-end headsets for computer gamers. Considering the 2022 economy, ABC Corp. plans to introduce only one new headset model for its 2020
Explain which demographic shift do feel will have noticeable : Explain which demographic shifts, if any, do you feel will have a noticeable impact on the marketing for your new product/service in the next 10 years?
Describe one example of bad designs : Describe one example of bad designs (you read or knew of) and give out details of the aspect of bad design that needs to be corrected or improved.
What will be the resulting percentage change in EBIT : Assume that current level of sales is 355 units. What will be the resulting percentage change in EBIT if they expect units sold to changes by -1.9 percent
Improve an organization customer service : What are the steps to evaluate the best process to follow when deciding to use Lean Six Sigma to improve an organization's customer service?
Prepare an absorption-costing income statement for rafael co : Variable selling and administrative costs were $2 per unit sold, and fixed selling and administrative expenses. Prepare an absorption-costing income statement.
Explain the direct care functions of the hl7 ehr system : You are the CIO of a 300-physician practice. The board of directors has decided to purchase an electronic medical record (EMR). You have been asked what the rol
Determine the degree of operating leverage : The average selling price for one of their swim trunks is $86.72. The variable cost per unit is $24.34, Determine the degree of operating leverage

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare all journal entry relating to vancouver corporation

On January 1, 2017, Prepare all journal entries for 2017 and 2018 relating to Vancouver Corporation's investment in Montreal Corporation.

  Is not estimating bad debts way of manipulating net income

After all, the value to the asset has just increased due to the repair. 2. Isn't estimating bad debts a way of manipulating net income.

  Accrual accounting is used in financial reporting and in

accrual accounting is used in financial reporting and in analysis. additionally analysis often focuses on cash flows in

  What amount of franchise fee did burger king earn

What amount of franchise fee did Burger King earn? Burger King granted a franchise to Shakers where Shakers will have to pay franchise.

  What is this project equivalent annual cost

The fixed asset is fully depreciated over life of project and has no salvage value. If required return is 10%, what is this project's equivalent annual cost

  Determine the amount of depreciation expense for the years

compare three depreciation methodsbreyer company purchased packaging equipment on january 3 2010 for 101250. the

  What is the divisional cost of equity capital

The firm has decided to assign a 6% pre-tax cost of debt to the new division. What is the divisional cost of equity capital for this new business line?

  How will impact the employee tax situation

Explain who might claim these tax credits and how this will impact the employee's tax situation. The TD1 form is used by employees to claim federal personal

  Determine the yield to maturity

The 11-year $1,000 par bonds of Vail Inc. pay 14 percent interest. The current market price for the bond is $1,090. Determine the yield to maturity

  Prepare the companys multiple-step income statement

Prepare the company's multiple-step income statement for 2020. (Enter all amounts as positive values.). The following list of items was extracted from the Dec

  Identify the type of each adjusting entry prepared

Four types of adjusting entries are described at the beginning of the chapter. Using these descriptions, identify the type of each adjusting entry prepared

  How should jay plc account for the transaction

How should Jay plc account for this transaction? Provide the rationale for your answer and specify the nature of risks that Jay retains or transfers to Kima.

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!

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