Questions Essay

2330 WordsMar 26, 201310 Pages
sti------------------------------------------------- Top of Form According to the depreciation rates used by the company and described in the Production Cost Report, if a company adds 50 new workstations at a cost of $250,000 each and also spends $5 million for an addition to its assembly plant to accommodate the new workstations, then its annual depreciation costs will rise by | | | $1,750,000 | | | $700,000 | | | $350,000 | | | $17,500,000 | | | None of these------------------------------------------------- Top of Form Income Statement Data | Quarter 1(in 000s) | Sales Revenues | $50,000 | Operating Profit | 14,400 | Net Income | $ 9,555 | | | Balance Sheet Data | | Total Current…show more content…
| | | 70% of the $5 million in advertising expenditures will be allocated to the costs of advertising for entry-level cameras and 30% will be allocated to the costs of multi-featured cameras. | | | the per camera advertising costs for both entry-level and multi-featured cameras will be $10.00. | | | 40% of the $5 million in advertising expenditures will be allocated to the costs of advertising for entry-level cameras and 60% will be allocated to the costs of multi-featured cameras. | | | the per camera advertising costs for entry-level cameras will be 50% larger than the per camera advertising costs for multi-featured cameras. | Income Statement Data | Quarter 1(in 000s) | Sales Revenues | $50,000 | Production Costs | 26,500 | Delivery Costs | 1,600 | Marketing Costs | 8,500 | Administrative Expenses | 2,000 | Operating Profit | 14,400 | Net Interest | 750 | Income Before Taxes | 13,650 | Taxes | 4,095 | Net Income | $9,555 | Given the above figures, the company’s net profit margin (defined as net income divided by sales revenues, as per the Help screen for the Comparative Financial Performance page of the GSR) is | | | 28.8% | | | 27.3% | | | 81.9% | | | 19.1% | | | 26.8% | | ------------------------------------------------- Top of Form According to the cost
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