Question

In: Economics

Theophilus sells a line of luxury face shields to European royalty. Last year he sold 13...

Theophilus sells a line of luxury face shields to European royalty. Last year he sold 13 units across Europe, and believes the market is due for an upswing (sales the previous three years were 11, 9, and 7, respectively) He has hired a new sales manager, who has promised that sales would be greater than 1500 units this year, and based this information on the pandemic situation as well as his own forecast formula. One of Englebert's longtime competitors, who has sold 107 units so far in 2020, committed to producing 2000 units to take advantage of the expected surge in demand. If Englebert does a generalized breakeven analysis, what number should he use as base sales? Justify your answer

Solutions

Expert Solution

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

Mr. Smith is a resident of the UK. Last year he sold an apartment in Germany....
Mr. Smith is a resident of the UK. Last year he sold an apartment in Germany. According to the DTC between UK and Germany income derived from immovable property is taxable in the Contracting State in which the property is situated (Article 6). Besides this, Article 13(1) of the same DTC provides that gains arising on the disposal of immovable property are taxable in the Contracting State in which the property is situated. Finally, Article 23 of the tax treaty...
Khan Inc. is a small manufacturer of face masks. Last year, 50,000 masks were sold for...
Khan Inc. is a small manufacturer of face masks. Last year, 50,000 masks were sold for $20 each. The income statement is as follows: Sales 1,000,000 Less variable cost    400,000 Less fixed cost    200,000 EBIT    400,000 Less interest               125,000 EBT    275,000 Less tax 40%    110,000 EAT          165,000 EPS (100,000 shares)          1.65 Find DOL, DFL and degree of total leverage. If sales increase by 5% what effect will it have on the EPS?
Cami Cakes sells cakes and pies. Last year it sold on an average of 1,000 cakes...
Cami Cakes sells cakes and pies. Last year it sold on an average of 1,000 cakes per month and had the following average monthly total costs:( Rent $1,000 Materials 10,000 Hourly labor for production 8,000 Manager's salary 3,000 The normal selling price is $25.00 per cake, and Cami usually sells 1,000 cakes per month. Wal-Mart has offered to pay Cami's $20.00 per cake to supply them with 500 cakes during the next month. (Assume that this is a one-time sale...
Cool Gafitas Inc. sells sunglasses. Last year the glasses sold for $ 35 each, with variable...
Cool Gafitas Inc. sells sunglasses. Last year the glasses sold for $ 35 each, with variable costs per goggle of $ 26 and fixed operating costs of $ 25,000. How many glasses does Cool Glasses have to sell this year to break even considering the aforementioned costs, given the following scenarios? All numbers remain the same as last year. (3 points) Fixed operating costs increase to $ 28,000, other items remain the same. (3 points) The sale price is increased...
Cool Gafitas Inc. sells sunglasses. Last year the glasses sold for $ 35 each, with variable...
Cool Gafitas Inc. sells sunglasses. Last year the glasses sold for $ 35 each, with variable costs per goggle of $ 26 and fixed operating costs of $ 25,000. How many glasses does Cool Glasses have to sell this year to break even considering the aforementioned costs, given the following scenarios? All numbers remain the same as last year. (3 points) Fixed operating costs increase to $ 28,000, other items remain the same. (3 points) The sale price is increased...
6. (1) A 13 weeks T-bill with a face value of $100,000 was sold at an...
6. (1) A 13 weeks T-bill with a face value of $100,000 was sold at an annual interest rate of 3% on Monday, August 31. If you purchase it on August 31, how much was the purchase price? 2. If you hold the T-bill until maturity (November 30,2020), how much will you receive from U.S. Treasury department on maturity date? How much is your annual effective interest rate? 3. If the annual interest rate drops to 2% 4 weeks later...
The nut house sells almonds, cashews, and pistachios. They sold 10,000 cans last year. Pistachios outsold...
The nut house sells almonds, cashews, and pistachios. They sold 10,000 cans last year. Pistachios outsold cashews by a margin of 2 to 1 in cans. sales of almonds were half the sales of cashews in cans. fixed costs for the nut house are 20,000 . almonds: unit sales Price:8.00 unit variable:4.00 cashews:unit sales price:10.00 unit variable:5.00 Pistachios: unit sales price:6.00 unit variable cost: 4.00 what is the breakeven sales volume and dollars for each nut rounded?
The nut house sells almonds, cashews, and pistachios. They sold 10,000 cans last year. Pistachios outsold...
The nut house sells almonds, cashews, and pistachios. They sold 10,000 cans last year. Pistachios outsold cashews by a margin of 2 to 1 in cans. sales of almonds were half the sales of cashews in cans. fixed costs for the nut house are 20,000 . almonds: unit sales Price:8.00 unit variable:4.00 cashews:unit sales price:10.00 unit variable:5.00 Pistachios: unit sales price:6.00 unit variable cost: 4.00 what is the breakeven sales volume and dollars for each nut rounded?
A Realtor claims that no more than half of the homes he sells are sold for...
A Realtor claims that no more than half of the homes he sells are sold for less than the asking price. When reviewing a random sample of 16 sales over the past year, he found that actually 13 were sold below the asking price. (a) The assumption of normality is justified. Yes No (b-1) Calculate a p-value for the observed sample outcome, using the normal distribution. (Round your z-value to 2 decimal places. Round your answer to 4 decimal places.)...
The company sells many styles of earrings, but all are sold for the same price—$13 per...
The company sells many styles of earrings, but all are sold for the same price—$13 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings): January (actual) 21,400 June (budget) 51,400 February (actual) 27,400 July (budget) 31,400 March (actual) 41,400 August (budget) 29,400 April (budget) 66,400 September (budget) 26,400 May (budget) 101,400 The concentration of sales before and during May is due to Mother’s Day. Sufficient...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT