You are working as a cost accountant of Proctor and Gamble company’s detergents manufacturing division. Currently...

You are working as a cost accountant of Proctor and Gamble company’s detergents manufacturing division. Currently the demand of Ariel is 550 units a month. The company is selling one Ariel package at a price of 100. The variable cost of ne unit is 62 and fixed cost is 15000. The company is planning to design a new sales promotional campaign that will cost the company 7000 extra. The company is forecasting that by starting new sales promotional campaign company’s sales will get raised by 25000.

(i) Should company Implement this alternative?

(ii) Prepare breakeven chart of the company to depicit breakeven point of the company in dollars and in units.

Solutions

Expert Solution

Implement or Not Decision:

Break Even Chart

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Suppose Proctor & Gamble (P&G) is considering purchasing $17million in new manufacturing equipment. If it purchases...

Suppose Proctor & Gamble (P&G) is considering purchasing $17million in new manufacturing equipment. If it purchases the equipment, it will depreciate it for tax purposes on a straight-line basis over five years, after which the equipment will be worthless. It will also be responsible for maintenance expenses of $1.00 million per year, paid in each of years 1 through 5. It can also lease the equipment under a true tax lease for $ 4.2 million per year for the five...

Suppose Proctor? & Gamble? (P&G) is considering purchasing $14 million in new manufacturing equipment. If it...

Suppose Proctor? & Gamble? (P&G) is considering purchasing $14 million in new manufacturing equipment. If it purchases the? equipment, it will depreciate it for tax purposes on a? straight-line basis over five? years, after which the equipment will be worthless. It will also be responsible for maintenance expenses of $1.00 million per? year, paid in each of years 1 through 5. It can also lease the equipment under a true tax lease for $3.4 million per year for the five?...

Suppose Proctor & Gamble (P&G) is considering purchasing $12 million in new manufacturing equipment. If it...

Suppose Proctor & Gamble (P&G) is considering purchasing $12 million in new manufacturing equipment. If it purchases the equipment, it will depreciate it for tax purposes on a straight-line basis over five years, after which the equipment will be worthless. It will also be responsible for maintenance expenses of $1.00 million per year, paid in each of years 1 through 5. It can also lease the equipment under a true tax lease for $3.3 million per year for the five...

Assume you are a newly hired accountant for a local manufacturing firm. You have enjoyed working...

Assume you are a newly hired accountant for a local manufacturing firm. You have enjoyed working for the company and are looking forward to your first experience participating in the preparation of the company’s financial statements for the year-ending December 31, the end of the company’s fiscal year. As you are preparing your assigned journal entries, your supervisor approaches you and asks to speak with you. Your supervisor is concerned because, based on her preliminary estimates, the company will fall...

Assume that you as an accountant who are now working with a particular well-known manufacturing company...

Assume that you as an accountant who are now working with a particular well-known manufacturing company that aspired to implement ERP systems organization-wide. Discuss 5 ways ,how Enterprise Resource Planning (ERP) systems might have impacted accountants in performing their respective duties. Include in your analysis the relevant examples where necessary to support your discussion.

i. Assuming you are new engineer working in R & D division at manufacturing company which...

i. Assuming you are new engineer working in R & D division at manufacturing company which has decided to evaluate CAD/CAM system to adopt in your company in order to meet Industrial 4.0. (Select your company such plastic moulding, automotive, aerospace, marine etc). The company are required yourself to outline executive report for them to decided which suitable CAD/CAM system can be selected. Your report must discuss the suitable CAD/CAM system by referring to current trend which available can be...

Assuming you are new engineer working in R & D division at manufacturing company which has...

Assuming you are new engineer working in R & D division at manufacturing company which has decided to evaluate CAD/CAM system to adopt in your company in order to meet Industrial 4.0. Make an outline to decided which suitable CAD/CAM system can be selected to adapt with Industrial 4.0.

You are the new cost accountant for ABX Corporation. After careful review of the company’s operations...

You are the new cost accountant for ABX Corporation. After careful review of the company’s operations you have been tasked to determine the company’s break-even point, the numbers sold to meet the company’s target profit and contribution income statement for both outcomes. Management has also asked that you provide the pros and cons for variable, traditional and activity-based costing method. After providing the pros and cons of each method recommend one method for the company’s use and support your discussion....

You are working for a local accountant during tax season and the accountant has asked you...

You are working for a local accountant during tax season and the accountant has asked you to prepare the appropriate tax form for Ace Company. Ace Company is a newly formed handyman business owned by Mr. and Mrs. Becker. Mrs. Becker just enrolled in her first bookkeeping class and created the spreadsheet you were given (attached file located above). As you can see Mrs. Becker left you a note about not paying any taxes this year. Update Mrs. Becker’s spreadsheet for...

You are working for a local accountant during tax season and the accountant has asked you...

You are working for a local accountant during tax season and the accountant has asked you to help with the tax preparation needs of Palo Alto, Inc. Palo Alto is a newly formed hi-tech company that specializes in manufacturing security chips for credit cards. The controller of Palo Alto, Michael Smith, would like your help with the following: (1) Palo Alto is considering purchasing property in California to build its corporate headquarters. The land had previously been used by a...

Subjects