Suppose that there is a customer expected to annually generate $1,500 of gross contribution. With 10% of annual discount factor, the NPV of the expected profits for the next THREE YEARS from this customer is about  A) $4,500 B) $4,103 C) $5,462 D) $3,730

Q: A company has $50 per unit in variable costs and $1,200,000 per year in fixed costs. Demand is…

A: Price = Total cost + Mark up on cost

Q: A product sells for ₱80 per unit and has a contribution margin of ₱35 per unit. Monthly fixed…

A: Contribution per unit = P 35 Monthly fixed cost = P 50,000 Loan amount = P 50,000 Monthly interest…

Q: Andrea Manufacturing provided the following information for last month. Sales P10,000 Variable cost…

A: Variable cost varies with the sales , therefore if sales double then variable cost will also be…

Q: Items purchased from a vendor cost $20 each, and the forecast for next year’s demand is 1,000 units.…

A: Given: Demand = 1,000 units Ordering cost = $5 per unit Storage cost = $4 per unit

Q: Assume you are a salesperson earning 10 percent commission and you have sold $540,000 in products…

A: The conceptual formula used:

Q: Suppose a Best Western motel has annual fixed costs applicable to its rooms of $1.2 million for its…

A: Average daily room rents = $50 Average variable costs = $10 As the motel is half full throughout the…

Q: X Ltd. has annual sales of 10,000 units at $300 per unit. The annual fixed costs amount to $300,000.…

A: Existing Proposed  Total cost other than bad debts 2,300,000 2,400,000 2,960,000 Collection…

Q: Transportation costs at a medium-size appliance distributor have been increasing by 9% per year. The…

A: The equivalent present worth of a cost is the cost that changes by the given interest rate. The same…

Q: Slosh Cleaning Corporation services both residential and commercial customers. Slosh expects the…

A: Weighted average contribution margin ratio = (Contribution margin ratio for Residential x Sales Mix)…

Q: 1.If your sales is 250,000, How much will be your total earnings if you received a fixed salary of…

A: Sales commission is an additional earning over the fixed salary for the employee which he receives…

Q: Calculate the economic value of a loyal customer for a company given that the customer purchases, on…

A: The Economic Value of a Customer:V=R×F×MD where V = value of a loyal customer R = revenue per…

Q: Suppose the demand of a product produced by a production firm is 8000 per year (1 year = 312 days)…

A: Annual demand, D = 8000 Production rate, P = 10000 per year Setup cost, S = 600 Unit carrying cost,…

Q: A company expects to sell 30,000 units of a product next year. Variable production cost is ₱25 and…

A: Units = 30,000 Selling price = P Sales = 30000*P = 30000P Variable cost = P 25 Variable cost =…

Q: ACE Design has daily sales of $52,000. The financial management team has determined that a lockbox…

A: By reducing collection time by 2.9 days, the cash balance will be increased by = daily sales x…

Q: Olsen Auto Supply typically earns a contribution marginratio of 40 percent. The store manager…

A:

Q: If the annual cost of goods sold is $30,000,000 and the average inventory is$5,000,000,a. What is…

A: Inventory turnover ratio is the ratio which measures the number of times inventory is consumed or…

Q: A firm generates $200 and $300 of profits first and second years, respectively. It is so for $1000…

A: We have to find out present value of all than find out  sum of all that will be today value of firm.

Q: The fixed costs at Harley Motors are $1 million annually. The main product has revenue of $9.90 per…

A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Q: A company is presently ordering on the basis of an EOQ. The demand is 10,000units a year, unit cost…

A: EOQ (Economic Order Quantity):-EOQ is the minimum order quantity that one should order to minimize…

Q: The TopCar Industries manufactures and sells car components. The current annual sales volume is…

A: Sales volume = 500000 units Selling price per unit = P 0.50 Annual expenses = P 80000

Q: Suppose a company has a sale of Rs. 200,000 for the year. The cost structure is given as follows:…

A: Raw material  4931.50 Work in progress 2780.82 Finished goods 6986.30 Debtor  16438.35…

Q: 4.18 The Punch Bowl Corp. produces and sells two products, P and B. In prior year, Punch Bowl has…

A: In the case of multiple products being sold, we compute the break-even point for the company…

Q: Assume Sparkle Co. expects to sell 150 units next month. The unit sales price is $90, unit variable…

A: Contribution Margin = ( Unit Sales Price - Unit Variable Cost ) x Number of units Net profit=…

Q: a. what is the EOQ for a firm that sells 5,000 units when the cost of placing an order is $5 and the…

A: a.Calculation of EOQ:

Q: A company sells a single product with a selling price of $120 and variable costs per unit of $90.…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: Determine the expected net operating income from sales of microchip components. The probabilities…

A: Net operating income (NOI) is defined as the income, which is calculated by analyzing the…

Q: Jasmine Inc. makes a single product that it sells for $25 each.  Variable costs are $13 per unit and…

A: Contribution margin is sales revenue over and above it's variable costs. In order to earn target…

Q: The more reliable sales amount from which to base projected sales is a) Latest month b) Latest year…

A: Financial Planning has utmost important in any business and strategic management.  If business is…

Q: The annual profit P, of a small manufacturing firm is given as  P+100=Xsquared +15X where X is the…

A: P+ 100 =X^2 + 15X where P = profit X = no. of units Sold

Q: the company's sales volume in pounds must be:

A: Operating profit is the income generated by the company through its daily operating activities. The…

Q: In 2018, the company's sales was P 500,000. Its fixed costs amounted to P 100,000 per year. In 2019,…

A: Profit Volume ratio used to analyze the change in print due to change in sales. It is calculated by…

Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…

A: The Calculation of Profit is as follows: Contribution = Sales - Variable Costs…

Q: Suppose you sell 8,000 of the 3 pack of lenses described in question 3 above in one year. You cost…

A: Net income is the overall income earned by the company during the accounting period. It includes…

Q: make in excel and take screenshots. A Pumpkin Pie Manufacturing Company pays on the tenth day after…

A: Company can decrease the cost if working capital has been reduced and that is possible by decrease…

Q: The fixed costs incurred by a automotive shop are $200,000 per year. Variable costs are 60% of the…

A: Variable cost = 60% of annual revenue = $300,000 x 60% = $180,000

Q: In 2020, Al-Nawras Company sold 1,200,000 units of its product at a selling price of 32 dollars per…

A: The contribution margin per unit is calculated as difference between selling price and variable cost…

Q: Krismuch Co. estimated that the company can sell 200,000 units of a product next period and earn a…

A: The price of the product per unit = P14.7 Refer step2 for explanation

Q: The fixed cost at Harley motors are $1M annually. The main product has a revenue of $9.90 per unit…

A: Net profit or loss can be calculated by deducting fixed costs and variable costs from the sales…

Q: nse was £4.50 per unit. The company needed to sell 20,000 of stationary to break even. The operating…

A: To calculate the sale volume of the coming year , the sale of current year has to  be calculated.…

Q: Last year, the contribution margin ratio of Lamesa company was 30%. this year, fixed costs are…

A: The contribution margin is calculated as difference between sales and variable costs.

Q: You have just completed the first year of operation for your business andhave the following…

A:

Q: The selling of a product has been set at $300 per unit , and at that price the company expects to…

A: The calculation of target profit has been made as follows: Target profit=Total investment×Required…

Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…

A: Under Marginal costing profit is  Sales revenue - Total variable cost - Total Fixed cost We know…

Q: A product sells for ₱100 per unit and has a contribution margin of ₱45 per unit. Monthly fixed…

A: Selling price = ₱100 Contribution margin = ₱45 Fixed cost = ₱350000 Annual interest = 250000 * 11% =…

Q: Net revenues at an older manufacturing plant will be $2 million for this year. The net revenue will…

A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.