2016 2017 1. Number of T-shirts purchased 215,000 245,000 Number of T-shirts discarded 2. 15,000 20,000 3. Number of T-shirts sold (row 1 – row 2) 200,000 225,000 4. Average selling price 5. Average cost per T-shirt 6. Administrative capacity (number of customers) 7. Administrative costs 8. Administrative cost per customer (row 7 ÷ row 6) 2$ 30.00 31.00 15.00 13.00 4,250 4,500 $1,633,500 $1,593,750 2$ 375 363 Administrative costs depend on the number of customers Gianni has created capacity to support, not on the actual number of customers served. Gianni had 3,600 customers in 2016 and 3,500 customers in 2017. 1. Is Gianni's strategy one of product differentiation or cost leadership? Explain briefly. 2. Describe briefly the key measures Gianni should include in its balanced scorecard and the reasons for doing so. Required

2016 2017 1. Number of T-shirts purchased 215,000 245,000 Number of T-shirts discarded 2. 15,000 20,000 3. Number of T-shirts sold (row 1 – row 2) 200,000 225,000 4. Average selling price 5. Average cost per T-shirt 6. Administrative capacity (number of customers) 7. Administrative costs 8. Administrative cost per customer (row 7 ÷ row 6) 2$ 30.00 31.00 15.00 13.00 4,250 4,500 $1,633,500 $1,593,750 2$ 375 363 Administrative costs depend on the number of customers Gianni has created capacity to support, not on the actual number of customers served. Gianni had 3,600 customers in 2016 and 3,500 customers in 2017. 1. Is Gianni's strategy one of product differentiation or cost leadership? Explain briefly. 2. Describe briefly the key measures Gianni should include in its balanced scorecard and the reasons for doing so. Required

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.5E

See similar textbooks

Similar questions

Block, S., Hirt, G., & Danielsen, B. (2017). Foundations of Financial Management. New York, NY: McGraw-Hill Education. 16th edition. #13. United Snack Company sells 50-pound bags of peanuts to univeristy dormitories for $20 a bag. The fixed costs of this operation are $176,250, while the variable costs of peanuts are $0.15 per pound. A. What is the break-even point in bags? B. Calculate the porfit or loss on 7,000 bags and on 20,000 bags. C. What is the degree of operating at 19,000 bags and at 24,000 bags? Why does the degree of operating leverage change as the quantity sold increases? D. If United Snack Company has an annual interest expense of $15,000, calculate the degree of financial leverage at both 19,000 and 24,000 bags. E. What is the degree of combined leverage at both sales levels?
Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. INFORMATIONSamcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022:1. Total production and sales 2 400 units2. Selling price per table R1 2003. Variable manufacturing costs per table:Direct material R288Direct labour R192Overheads R964. Fixed manufacturing overheads R216 9605. Other costs:Fixed marketing and administrative costs R144 000Sales commission 5%
How many units must be sold if the company wishes to earn a net profit of R298 920. INFORMATIONSamcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022:1. Total production and sales 2 400 units2. Selling price per table R1 2003. Variable manufacturing costs per table:Direct material R288Direct labour R192Overheads R964. Fixed manufacturing overheads R216 9605. Other costs:Fixed marketing and administrative costs R144 000Sales commission 5%
Company X reports $200,000 in sales of Widgets in 2019. The Costs of Goods sold for these Widgets is $90,000. All other operating expenses (SG&A, R&D, Depreciation, Other, etc.) are $50,000. Which of the following is the correct representation of the profitability ratios: Gross Profit Margin 45%, Operating Margin 30%. Gross Profit Margin 55%, Operating Margin 30%. Gross Profit Margin 45%, Operating Margin 20%. Gross Profit Margin 55%, Operating Margin 20%.
Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expenseby R100 000 is expected to increase sales by 400 units. INFORMATIONSamcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022:1. Total production and sales 2 400 units2. Selling price per table R1 2003. Variable manufacturing costs per table:Direct material R288Direct labour R192Overheads R964. Fixed manufacturing overheads R216 9605. Other costs:Fixed marketing and administrative costs R144 000Sales commission 5%
Jamestown Industries sells $48,000 in gift cards and expects 20% breakage. Cost of goods sold is 25% of each gift card. When the expected gift cards are redeemed, how much cost of goods sold will Jamestown record? O $12,000 $24,000 O $10,000 O $9,600
Your Company sells exercise bikes for $675 each. The following cost formula relates to last year's operations: Y = $135,000 + $157X. Your Company sold 520 bikes last year, what was its net income last year? Group of answer choices $134,360 $351,000 $269,360 $104,360 $ 81,640
Use the information given below to calculate each of the following independently 3.1 Expected total Marginal Income and Net Profit/Loss Slumber Limited manufactures beds. The following information was extracted from the budget for 2024:Expected production and sales (units) 1 200Selling price per bed R6 000Direct materials cost per bed R1 700Direct labour cost per bed R860Variable manufacturing overheads cost per bed R320Fixed manufacturing overheads cost R1 084 800Sales commission (as a percentage of the selling price) 20%Fixed administrative and selling costs R720 000 PLEASE PUT THE ANSWER IN RANDS
Gigasales Department Store Income Statement For the Year Ended December 31, 2022 Net sales $700,000 Cost of goods sold 560,000 Gross profit 140,000 Operating expenses Selling expenses $100,000 Administrative expenses 20,000 120,000 Net income $ 20,000 Karen believes the problem lies in the relatively low gross profit rate of 20%. Reece believes the problem is that operating expenses are too high. Karen thinks the gross profit rate can be improved by making two…
How do I figure out the pretax net nonoperating expense ? (in thousands) Dec. 29, 2016 Dec. 30, 2015 Revenues Circulation $ 880,543 $ 851,790 Advertising 580,732 638,709 Other 94,067 88,716 Total revenues 1,555,342 1,579,215 Production costs Wages and benefits 363,051 354,516 Raw materials 72,325 77,176 Other 192,728 186,120 Total production costs 628,104 617,812 Selling, general and administrative costs 721,083 713,837 Depreciation and amortization 61,723 61,597 Total operating costs 1,410,910 1,393,246 Restructuring charge 14,804 0 Multiemployer pension plan withdrawal expense 6,730 9,055 Pension settlement charges 21,294 40,329 Early termination charge 0 0 Operating profit 101,604 136,585 Loss from joint ventures (36,273) (783) Interest expense, net 34,805 39,050 Income from continuing operations…
The follooving information relates to Snorbird Corporation Sales at the breakeven point P312.500 lotal foed expenses 250,000 et opetating income 150,000 what is Sncwbird s margin of safety
Use the marginal income ratio to calculate the break-even value. INFORMATIONSamcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022:1. Total production and sales 2 400 units2. Selling price per table R1 2003. Variable manufacturing costs per table:Direct material R288Direct labour R192Overheads R964. Fixed manufacturing overheads R216 9605. Other costs:Fixed marketing and administrative costs R144 000Sales commission 5%