Problem 4-7 (Algo) Sales projections [LO4-2] Dodge Ball Bearings had sales of 10,000 units at $70 per unit last year. The marketing manager projects a 20 percent increase in unit volume sales this year with a 10 percent price decrease (due to a price reduction by a competitor). Returned merchandise will represent 5 percent of total sales. What is your net dollar sales projection for this year? Net sales
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![Problem 4-7 (Algo) Sales projections [LO4-2]
Dodge Ball Bearings had sales of 10,000 units at $70 per unit last year. The marketing manager projects a 20 percent increase in unit
volume sales this year with a 10 percent price decrease (due to a price reduction by a competitor). Returned merchandise will
represent 5 percent of total sales.
What is your net dollar sales projection for this year?
Net sales](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff02de36d-e18c-44c1-986b-3e2b139c2c23%2F155e6687-b17e-40c5-8785-99ab9d08732b%2Fdt6y6h9_processed.jpeg&w=3840&q=75)
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- 3.3 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.3.4 How many units must be sold if the company wishes to earn a net profit of R298 920. Using the below information answer the above questions INFORMATIONSamcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30June 2022:1. Total production and sales 2 400 units2. Selling price per table R1 2003. Variable manufacturing costs per table: Direct material R288 Direct labour R192 Overheads R964. Fixed manufacturing overheads R216 9605. Other costs: Fixed marketing and administrative costs R144 000 Sales commission 5%6. Question 6 The attached table shows financial data (year 2009) for two US retailers: Save-A-Lot Retailers and Wally’s Mart. Assume that both companies have an average annual holding cost rate of 20% (i.e. it costs both retailers $2 to hold an item for one entire year that they procured for $10). How many days, on average, does a product stay in Save-A-Lot’s inventory before it is sold? Assume that stores operate 365 days a year.Q5 Libscomb Technologies' annual sales are $6,879,896 and all sales are made on credit, it purchases $3,179,857 of materials each year (and this is its cost of goods sold). Libscomb also has $565,311 of inventory, $545,421 of accounts receivable, and $422,365 of accounts payable. Assume a 365 day year. What is Libscomb’s Operating Cycle (in days)?
- 4. 5-23 The sales manager is convinced that a 10% reduction in the selling price, combined with a $30,000 increase in advertising, would increase this year’s unit sales by 25%. If the sales manager is right, what would be this year’s net operating income if his ideas are implemented? Do you recommend implementing the sales manager’s suggestions? Why?Problem 9-11 A firm with sales of $690,000 has average inventory of $390,000. The industry average for inventory turnover is three times a year. What would be the reduction in inventory if this firm were to achieve a turnover comparable to the industry average? Round your answer to the nearest dollar. $ Problem 9-12 A firm with annual sales of $9,500,000 increases its inventory turnover from 2.5 to 3.0. How much would the company save annually in interest expense if the cost of carrying the inventory is 12 percent? Round your answer to the nearest dollar. $ Problem 9-13 Two firms have sales of $1 million each. Other financial information is as follows: Firm A B EBIT $ 220,000 $ 220,000 Interest expense 40,000 60,000 Income tax 60,000 25,000 Debt 800,000 270,000 Equity 1,200,000 960,000 What are the operating profit margins and the net profit margins for these two firms? Round your answers to two decimal places. Operating profit…5. The chalk company reported sales of P2,000,000 in 20X6 and P3,000,000 in 20X7 made evenly throughout each year. The consumer price index during 20X5 remained constant at 100, and at the end of 20X6 and 20X7 it was 102 and 104, respectively. What should Chalk report as sales for 20X7, restated for general price-level changes? a.3,000,000b.3,029,126c.3,058,821d.3,120,000 6. Lewis Company was formed on January 1, 20X6, Selected balances from the historical cost balance sheet at December 31, 20X7, were as follows: Land (purchased in (20X6)…………………… P120,000Investment in nonconvertible bonds (purchased in 20X6, and expected to be held to maturity)…………60,000 Long-term debt……….80,000 The average cpnsumer price index was 100 for 20X6, and 110 for 20X7. In a constant peso balance sheet (adjusted for changing prices) at December 31, 20X7, these selected account balances should be shown at Land Investment Long-term debt a. 120,000…
- Problem 9-12 A firm with annual sales of $9,500,000 increases its inventory turnover from 2.5 to 3.0. How much would the company save annually in interest expense if the cost of carrying the inventory is 12 percent? Round your answer to the nearest dollar. $4. Ruth Company currently has $1,000,000 in accounts receivable. Its days sales outstanding (DSO) is 50days. The company wants to reduce its DSO to the industry average of 32 days by pressuring more ofits customers to pay their bills on time. The company’s CFO estimates that if this policy is adopted thecompany’s average sales will fall by 10 percent. Assuming that the company adopts this change andsucceeds in reducing its DSO to 32 days and does lose 10 percent of its sales, what will be the level ofaccounts receivable following the change? Assume a 365-day year.2. Navigator sells GPS trackers for $50 each. It expects sales of 5,000 units in quarter 1 and a 5% increase each subsequent quarter for the next 8 quarters. PLEASE NOTE: Units are rounded to whole numbers with commas as needed (i.e. 1,234). All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Budgeted Costs Desired Ending Inventory Sales Price per Unit Expected Sales (units) Required Production Purchases Required Beginning Inventory Total Sales Revenue Total Required Units Using the information above, along with the terms above, prepare a sales budget by quarter for the first year (use the format shown in the textbook): Navigator Sales Budget For the Year Ended Dec. 31, 2019 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total ? ? ? ? ? ? ? ? ? ? ? X ? ? ? ? ? ?
