The quarterly demand for smartphones at a retailer is as show.
|
Year |
Quarter |
Demand |
|
1 |
I |
513 |
|
II |
932 |
|
|
III |
1509 |
|
|
IV |
1902 |
|
|
2 |
I |
693 |
|
II |
1163 |
|
|
III |
1857 |
|
|
IV |
2469 |
|
|
3 |
I |
846 |
|
II |
1439 |
|
|
III |
2271 |
|
|
IV |
3079 |
|
|
4 |
I |
1070 |
|
II |
1751 |
|
|
III |
2785 |
|
|
IV |
3613 |
Forecast the quarterly demand for year 5 using the following models:
In: Statistics and Probability
Midlands Inc. had a bad year in 2019. For the first time in its
history, it operated at a loss. The company’s income statement
showed the following results from selling 79,000 units of product:
net sales $1,580,000; total costs and expenses $1,637,040; and net
loss $57,040. Costs and expenses consisted of the
following.
|
Total |
Variable |
Fixed |
||||
|---|---|---|---|---|---|---|
| Cost of goods sold | $972,000 | $486,000 | $486,000 | |||
| Selling expenses | 517,040 | 90,000 | 427,040 | |||
| Administrative expenses | 148,000 | 56,000 | 92,000 | |||
| $1,637,040 | $632,000 | $1,005,040 |
Management is considering the following independent alternatives
for 2020.
| 1. | Increase unit selling price 25% with no change in costs and expenses. | |
| 2. | Change the compensation of salespersons from fixed annual salaries totaling $203,000 to total salaries of $36,985 plus a 5% commission on net sales. | |
| 3. | Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50. |
(a) Compute the break-even point in dollars for
2019. (Round contribution margin ratio to 4 decimal
places e.g. 0.2512 and final answer to 0 decimal places, e.g.
2,510.)
| Break-even point |
$Enter the break-even point in dollars rounded to 0 decimal places |
(b) Compute the break-even point in dollars under
each of the alternative courses of action for 2020.
(Round contribution margin ratio to 3 decimal places
e.g. 0.251 and final answers to 0 decimal places, e.g.
2,510.)
|
Break-even point |
||||
|---|---|---|---|---|
| 1. | Increase selling price |
$Enter a dollar amount |
||
| 2. | Change compensation |
$Enter a dollar amount |
||
| 3. | Purchase machinery |
$Enter a dollar amount |
Which course of action do you recommend? Select an
option
Alternative 1Alternative 2Alternative 3
In: Accounting
Midlands Inc. had a bad year in 2019. For the first time in its
history, it operated at a loss. The company’s income statement
showed the following results from selling 75,000 units of product:
net sales $1,500,000; total costs and expenses $1,750,200; and net
loss $250,200. Costs and expenses consisted of the
following.
|
Total |
Variable |
Fixed |
||||
|---|---|---|---|---|---|---|
| Cost of goods sold | $1,080,000 | $600,000 | $480,000 | |||
| Selling expenses | 520,200 | 95,000 | 425,200 | |||
| Administrative expenses | 150,000 | 55,000 | 95,000 | |||
| $1,750,200 | $750,000 | $1,000,200 |
Management is considering the following independent alternatives
for 2020.
| 1. | Increase unit selling price 25% with no change in costs and expenses. | |
| 2. | Change the compensation of salespersons from fixed annual salaries totaling $198,000 to total salaries of $37,995 plus a 5% commission on net sales. | |
| 3. | Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50. |
(a) Compute the break-even point in dollars for
2019. (Round contribution margin ratio to 4 decimal
places e.g. 0.2512 and final answer to 0 decimal places, e.g.
2,510.)
| Break-even point |
$Enter the break-even point in dollars rounded to 0 decimal places |
(b) Compute the break-even point in dollars under
each of the alternative courses of action for 2020.
(Round contribution margin ratio to 3 decimal places
e.g. 0.251 and final answers to 0 decimal places, e.g.
2,510.)
|
Break-even point |
||||
|---|---|---|---|---|
| 1. | Increase selling price |
$Enter a dollar amount |
||
| 2. | Change compensation |
$Enter a dollar amount |
||
| 3. | Purchase machinery |
$Enter a dollar amount |
Which course of action do you recommend? Select an option
Alternative 1Alternative 2Alternative 3
In: Accounting
4) What is the present value of receiving (the sum of) $30,000 next year, $35,000 in two years, and $40,000 in three years if the interest rate is 4%?
In: Finance
You are valuing an investment that will pay you $21,000 per year for the first 9 years, $29,000 per year for the next 12 years, and $68,000 per year the following 16 years (all payments are at the end of each year). Another similar risk investment alternative is an account with a quoted annual interest rate of 13.00% with monthly compounding of interest. What is the value in today's dollars of the set of cash flows you have been offered?
In: Finance
In: Finance
A friend who started a business during the last year has come to you with the following statement: "My accountant is preparing our first financial report and she told me one of the statements was a Statement of Cash Flows. She also told me that my business is facing cash flow problems."
Instructions
Prepare a reply to your friend. Include three causes of cash flow
problems and solutions to solve the cash flow problems. Explain how
the Statement of Cash Flows will assist in managing the
business.
In: Accounting
In: Finance
In: Accounting
In: Finance