Dorothy Wagner is currently selling 30 "I ♥ Calculus" T-shirts per day, but sales are dropping at a rate of 5 per day. She is currently charging $7 per T-shirt, but to compensate for dwindling sales, she is increasing the unit price by $1 per day. How fast, and in what direction, is her daily revenue currently changing? Her revenue is decreasing at a rate of $ per day.
Q: Scott Incorporated has been in business for several months. Because of increased competition in the…
A: Break-even analysis is a technique widely used by production management. It helps to determine the…
Q: XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit,…
A: Contribution margin is the price of the product deduct all the linked variable costs, results from…
Q: Marcia Almeida works as a sales analyst for a toy manufacturer. She predicts that toy sales will…
A: Here, Sales decrease from May to June is by 5% Amount of Sales Decrease = $1,75,000 The Total…
Q: 1.) Caroline, the owner of Caroline's Boutique, Ltd., estimates that she will sell $20,000.00 worth…
A: in order to carry the optimal quantity that means to be ordered for year. calculation involve such…
Q: A retailer anticipates selling 4,050 units of its product at a uniform rate over the next year. Each…
A: Economic order quantity is the optimal quantity to be ordered to minimize the total cost.
Q: Sam’s Skate Shop specializes in SUPERIOR SKATES for ice hockey. Their only product is hockey…
A: Break-even point: A breakeven analysis is a calculation of the point at which revenue equals…
Q: A Store has annual demand of 29,000 units. The annual carrying cost for a unit is $15.5, and the…
A:
Q: Miss Arlene's Digital World rents out DVDS. The manager observed that the weekly total number of…
A: Number of rentals = 300Inventory = 960Cost of each rental = Php 25
Q: A store in New Orleans makes 100 beignets every morning. The exact demand for beignets throughout…
A: Expected revenue is the amount of revenue which the company expects to earn in a period. Expected…
Q: If I have a start up cost of $25,000. My monthly costs are $10,000. My product sells for $6.00 and i…
A: (1) Startup Cost = $ 25,000 (2) Monthly Costs = $ 10,000 (3) Selling Price per Smoothie =$ 6 (4)…
Q: Santa's Scarlet Suits sell for seventy-seven dollars cach with sixty-six sales each week. Market…
A: A lower in price will increase the volume of the sales which will initially increase the sales…
Q: Your firm sells widgets for $10 each. You make a gross profit of $3 on each widget. You have…
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Q: A woman making $2000 per month has her salary reduced by 10% because of sluggish sales. One year…
A: Salaries and wages payable: Salaries and wages payable is a payment made to an employee for…
Q: Casey’s Cases sells cell phone cases in a mall kiosk. Casey charges $40 per case. The variable cost…
A: Break-even point (in units) = Fixed costContribution per unit
Q: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand…
A: Break even level sales gives the number of units to be sold to achieve no profit no loss situation…
Q: Green Tees, an on line retailer of t-shirts, orders 100,000 t-shirts per year from its manufacturer.…
A:
Q: A company wants to decrease their energy use by 16%. If their electric bill is currently $2,700 a…
A: The decrease rate of energy consumption and the current bill can be used to compute the estimated…
Q: Kabundukan Dairy makes cheese, which it sells at local supermarkets. The fixed monthly cost of…
A: Given: Fixed Cost - 4000 Variable Cost - 0.21 per pound Selling price - 0.75 per pound Unit can be…
Q: Dream Corporation is trying to improve its inventory control system and has installed an online…
A: Economic Order Quantity represents the optimal quantity to be purchased while placing every order…
Q: Company Y thinks they can increase sales by lowering the price of their product. If they currently…
A: Current revenue = 2,000 units x $110 = $220,000
Q: Toothpaste is a necessary, frequently purchased consunmer product. In an average week a retailer…
A: Gross Margin is a financial measure that measures the financial health and working of an…
Q: Microbiotics currently sells all of its frozen dinners cash-on-delivery but believes it can increase…
A: Sales Promotion: When the companies gives benefits to its customer by way of different types of…
Q: Teresa's taco truck currently sells 2,500 tacos per day, for $6 each. Teresa estimates that, for…
A: Teresa sells 2500 tacos per day @ $6 each Hence she would make : 2500 x $6 = $15,000 per day
Q: Yarn Basket, Ltd., sells handminus−knit scarves. Each scarf sells for $35. The company pays $350 to…
A: Calculate the break-even sales:
Q: Green Tees, an on line retailer of t-shirts, orders 10,000 t-shirts per year from its manufacturer.…
A: Optimal order quantity is also called economic order quantity and is the most cost-effective amount…
Q: Lia ITZY has determined that the annual demand for number 6 screws is 100,000 screws. Lia, who works…
A: Solution:- i)Calculation of average inventory as follows under:- Average inventory = EOQ / 2
Q: Problem Solving: Lila Battle has determined that the annual demand for number 6 screws is 100,000…
A:
Q: Bando Corp. sells a single part for a price of $40 per unit. The variable costs of the part are $15…
A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: A local TV repairs shop uses 36,000 units of a part each year (A maximum consumption of 100 units…
A: 1) Computation of Economic Order Quantity Annual Demand = 36,000 units Ordering Cost = 20per order…
Q: Knoll, Inc. currently sells 51,000 units a month for $98 each, has variable costs of $68 per unit,…
A: Calculate the amount of prior profit before the price change.
Q: Marquette Manufacturing produces "invisible" electric dog fences, sold through retail locations…
A: Variable costs are the costs which changes with the variation in output and vice versa to this,…
Q: Green Tees, an on line retailer of t-shirts, orders 100,000 t-shirts per year from its manufacturer.…
A: Ordering Cost is a type of expenditure used in computation of Economic Order Quantity (EOQ). It…
Q: Charlotte sells widgets which cost $50 each to purchase and prepare for sale. Annual sales are…
A: Economic order quantity can be defined as that level of order of for a raw material where carrying…
Q: A bookstore sells a particular book for ₱450. Variable expenses are ₱280 per book. Currently, the…
A: The annual fixed expenses can be figured out from the break even point formula.
Q: a sports club manufactures and sells T-shirts imprinted with names and slogans. Last Year, the…
A: Selling price for last year = 7.50 per shirt Revised selling price = 7.5 + 1.5 = 9 per shirt…
Q: The world-famous discounter, Fernwood Booksellers, specializes in selling paperbacks for $7 each.…
A: At braek even point, Sales - Variable cost - Fixed cost = 0 $7 x 200000 books - $5 x 200000 books -…
Q: Casey’s Cases sells cell phone cases in a mall kiosk. Casey charges $42 per case. The variable cost…
A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: Austin Avenue Clothiers pays $52 each for sports coats and has a fixed monthly cost of $780. The…
A: There are two type of costs being incurred in business. One is fixed costs and other is variable…
Q: A firm currently produces and sells 2,500 units every 60 days. One unit costs $150 to produce and…
A: Net Present Value: It is the tool used in Capital Budgeting to evaluate the profitability of a a…
Q: The KVS Pharmacy is open from 10:00 A.M. to 8:00 P.M.,and it receives 200 calls per day for delivery…
A: The calculation of the cost of deliveries is a crucial feature when the firm is delivering its…
Q: Suppose that at one of the Talbot's shops, marginal cost of a coat is constant at $150, and total…
A: By incurring additional expenditure of $ 1500 towards advertising talbots shop sales…
Q: The fixed costs of Chun Company are $309,000 and the total variable costs for its only product are…
A: Contribution = Selling price - Variable cost Increase in contribution margin = 120 units × $100×55%…
Q: Dream Corporation is trying to improve its inventory control system and has installed an online…
A: The inventory control system is a type of technological solution that helps in managing and tracking…
Q: A company wants to decrease their energy use by 15%. If their electric bill is currently $2,400 a…
A: Part (a) Given information: Current Bill = $2,400 Decrease Rate of energy = 15% Part (b) Company's…
Q: Suppose Stanley's Office Supply purchases 50,000 boxes of pens every year. Ordering costs are $100…
A: Calculate the EOQ: EOQ = √((2x Annual demand x ordering cost)/ carrying cost per unit EOQ =…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Currently, OET Corporation sells 350,000 units of widgets a month at a price of $21 a unit. The company currently has a net 30 credit policy. Mr. Ent, the company's financial manager, is evaluating a new credit policy of net 60 for the company. The marketing manager thinks that sales would increase by 10,000 units per month if the company were to switch to the new credit policy. The APR for OET is 13% compounded monthly, and its variable cost per widget is $12. Ignore taxes. Tomorrow, Mr. Ent will be making a presentation on the new proposed credit policy to the CEO of OT. He will be expected to provide answers to the following questions Briefly discuss the three components of a good credit policy.Currently, OET Corporation sells 350,000 units of widgets a month at a price of $21 a unit. The company currently has a net 30 credit policy. Mr. Ent, the company's financial manager, is evaluating a new credit policy of net 60 for the company. The marketing manager thinks that sales would increase by 10,000 units per month if the company were to switch to the new credit policy. The APR for OET is 13% compounded monthly, and its variable cost per widget is $12. Ignore taxes. Tomorrow, Mr. Ent will be making a presentation on the new proposed credit policy to the CEO of OET. He will be expected to provide answers to the following questions. As another alternative, suppose the company offers a credit policy of 3/10, net 60. The periodic rate based on this new credit policy is © а. 13.00% O b. 3.09% O c. 10.00% O d. 3.00% O e. 6.09%Currently, OET Corporation sells 350,000 units of widgets a month at a price of $ 21 a unit. The company currently has a net 30 credit policy. Mr. Ent, the company's financial manager, is evaluating a new credit policy of net 60 for the company. The marketing manager thinks that sales would increase by 10,000 units per month if the company were to switch to the new credit policy. The APR for OET is 13% compounded monthly, and its variable cost per widget is $12. Ignore taxes. Tomorrow, Mr. Ent will be making a presentation on the new proposed credit policy to the CEO of OET. He will be expected to provide answers to the following questions. The net present value of the proposed credit policy switch is O a. $837,692.31 O b. 5437.295.90 O c. $783,926.13 O d. $592,032.32 O e. $639,284.55
- Currently, OET Corporation sells 350,000 units of widgets a month at a price of $21 a unit. The company currently has a net 30 credit policy. Mr. Ent, the company's financial manager, is evaluating a new credit policy of net 60 for the company. The marketing manager thinks that sales would increase by 10,000 units per month if the company were to switch to the new credit policy. The APR for OET is 13% compounded monthly, and its variable cost per widget is $12. Ignore taxes. Tomorrow, Mr. Ent will be making a presentation on the new proposed credit policy to the CEO of OET. He will be expected to provide answers to the following questions. The net present value of the proposed credit policy switch is O a. $837,692.31 O b. $437,295.90 O $783.926.13 O d. $592,032.32 O. e. $639,284.55Currently, OET Corporation sells 350,000 units of widgets a month at a price of $21 a unit. The company currently has a net 30 credit policy. Mr. Ent, the company's financial manager, is evaluating a new credit policy of net 60 for the company. The marketing manager thinks that sales would increase by 10,000 units per month if the company were to switch to the new credit policy. The APR for OET is 13% compounded monthly, and its variable cost per widget is $12. Ignore taxes. Tomorrow, Mr. Ent will be making a presentation on the new proposed credit policy to the CEO of OET. He will be expected to provide answers to the following questions. The effective annual rate (EAR) based on this alternative credit policy of 3/10, net 60 is © a. 28.50% O b. 24.90% O c. 13.00% О d 16.09% O e 19.05%Regency Rug Repair Company is trying to decide whether it should relax its credit standards. The firm repairs 72,000 rugs per year at an average price of $32 each. Bad-debt expenses are 1% of sales, the average collection period is 40 days, and the variable cost per unit is $28. Regency expects that if it does relax its credit standards, the average collection period will increase to 48 days and that bad debts will increase to 1.5% of sales. Sales will increase by 4,000 repairs per year. If the firm has a required rate of return on equal-risk investments of 14%, what recommendation would you give the firm? Use your analysis to justify your answer. (Note: Use a 365-day year.)
- Caroline, the owner of Caroline’s Boutique, estimates that she will sell P300,000 worth of certain decorator table this year (P5,000/unit). Her accountants have determined that ordering costs amount to P1,250 per order and that carrying cost to 30% of average inventory. a.What is the optimum number of orders per year? b.How much is the optimum peso per order? c.What is the optimum number of units per order?Phillip F lamm's Computer Store in Texas sells a printer for $200. Demand is constant during the year, and annual demand is forecasted to be 600 units. Holding cost is $20 per unit per year, whereas the cost of ordering is $60 per order.Currently, the company is ordering 12 times per year (50 units each time). There are 250 working days per yea r, and the lead time is 10 days.a) Given the current policy of ordering 50 units at a time, what is the total of the annual ordering cost and the annual holding cost?b) If the company used the absolute best inventory policy, what would be the total of ordering and holding costs?c) What is the reorder point?RAF is currently makes all sales on credit and offers no cash discount. The firm is considering offering a 2% cash discount for payment within 15 days. The firm’s current average collection period is 60 days, sales are 40,000 units, selling price is $45 per unit, and variable cost per unit is $36. The firm expects that the change in credit terms will result in an increase in sales to 42,000 units, that 70% of the sales will take the discount, and that the average collection period will fall to 30 days. If the firm’s required rate of return on equal-risk investments is 25%, should the proposed discount be offered? (Note: Assume a 360-day year.)
- The manager of Coowie, Inc. is considering raising its current price of $30 per unit by 10%. If she does so, she estimates that demand will decrease by 20,000 units per month. Coowie currently sells 50,000 units per month, each of which costs $25 in variable costs. Fixed costs are $180,000. a. What is the current profit? b. What is the current break-even point in units? c. If the manager raises the price, what will profit be? d. If the manager raises the price, what will be the new break-even point in units?Lia ITZY has determined that the annual demand for number 6 screws is 100,000 screws. Lia, who works in her brother’s hardware store, is in charge of purchasing. She estimates that it costs $10 every time an order is placed. This cost includes her wages, the cost of the forms used in placing the order, and so on. Furthermore, she estimates that the cost of carrying one screw in inventory for a year is one-half of 1 cent. Assume that the demand is constant throughout the year. QUESTION: What would the average inventory be? What would the annual holding cost be?Dream Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Howe anticipates sales of 126,000 units per year, an ordering cost of P4 per order, and carrying costs of P1.008 per unit. The following year, the company. learns it can reduce ordering costs to P1 per order but that carrying costs will stay the same at P1.008 per unit. What is the total cost of inventory to be expected?