Use the following information to calculate the change in value that would result if the benchmark were achieved for this company for a full year: Benchmark Food Cost % 28.5 % Current Food Cost % 29.2 % Total Covers 335,000 $ 20.00 Average Check Capitalization Rate 8 % Show your work.
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- Keleher Industries manufactures pet doors and sells them directly to the consumer via their web site. The marketing manager believes that if the company invests in new software, they will increase their sales by 10%. The new software will increase fixed costs by $400 per month. Prepare a forecasted contribution margin income statement for Keleher Industries reflecting the new software cost and associated increase in sales. The previous annual statement is as follows:Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.Feedastudent Ltd are developing a Gift food service for students. Market research has indicated that customers would be willing to pay £50 for the product. The company usually expect a profit margin of 10% on products. Fixed costs for marketing and promotion is expected to be £12,000 per year. The company expects orders for 3000 units this year. Food costs are expected to be £41 per unit. Packaging and administration costs are £2 per service. Required: a) Calculate whether Enterprise Ltd can expect to make a profit this year. b) A reduction in the fixed costs of £4,000 could be achieved but this would result in a reduction of expected sales to 2000 per year. Would this reduce the cost gap and be a more profitable solution? Alternatively, cheaper food costing only £38 could be used but this may affect its reputation and…
- Projected financial results for the university's cafeteria for next year are shown. Answer each of the following independent questions. Sales $944,000 Fixed Cost $597,000 Total Variable Cost $235, 470 Total Cost $832, 470 Net Income $111,530 (a) How much is the contribution margin and the contribution rate?(b) How much does the business need to sell to break even?(c) If the business was to spend $24,000 to upgrade their processes, how much does the business need to sell to break even?(d) If 9% more meals were sold, what would be the resulting net income?Assume that Palmer Executive Pens uses 1,440,000 gallons of ink each year. Further, assume that Palmer can order the ink at a cost of $2 per gallon plus fixed ordering costs of $100 per order. The firm's carrying cost is 20% of the inventory value, at cost. What is Palmer’s minimum costs of ordering and holding inventory? a.$ 6,254 b.$10,733 c.$11,560 d.$13,563 e.$19,825 SHOW THE ANSWER AND COMPLETE SOLUTION IN A GOOD ACCOUNTING FORMThe Best Appliances had the following revenue over the past five Wars, To predict revenues for 2018, The Best Appliances uses the average for the Past five years. The company’s breakeven revenue is $800,000 per year. What is The Best Appliance’s predicted margin of safety in dollars for 2018? $800,000 $0 $200,000 $100,000
- Sanchez, Incorporated, is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is 1.7 percent per month. Current Policy New Policy Price per unit $ 700 $ 700 Cost per unit $ 420 $ 420 Unit sales per month 1,120 1,220 Based on the above information, determine the NPV of the new policy.Assume that total sales revenue for 2018 is projected to be $1,153,549. Assume also the following costs for Shannon’s Brewery: Packaged (Cans & Bottles) $150,000 Kegs $80,000 Shrinkage/WIP Loss $42,000 Contract Labor $9,000 Direct Labor $240,000 Freight $18,000 Consumer Advertising $29,454 Trade Promotion $31,039 Sales Promotion $18,000 Salaries & Benefits $180,000 Compute Shannon’s %NMC. Round your answer to the nearest percent. For example, if your computed answer is 99.4% your answer rounds down to 99%. If your computed answer is 99.5% you should round up to 100%.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%
- A distribution company is considering three different alternatives to satisfy their customer's demands. Their options are to rent a ready distribution center (D01), Rent and mobilize a center (D02), or outsourcing (OS). The estimate for each method is shown. The lifetime for D01, D02, and OS are 3, 6, and 2 respectively. MARR is 0.04 per year. and the percentage of change for all of the cases are 0 % Note: all units are in thousand $ D01 D02 OS First Cost, $ -136 -973 0 Annual Operation Cost,$ -92 -59 -123 Salvage Value,$ 28 333 0 a: Calculate the Fw of D01? b) Calculate FW for D02 c )What is the FW for outsourcing? d: Which alternative will be selected? f: Draw the cash flow for all of these three alternatives. If contract value with subcontractor increases by 15 % every year calculate FW for Outsourcing. Is there any change in your previous decision on the basis of the new condition? If yes, which…A company is making plans for next year, using cost-volume-profit analysis as its planning tool. Next year's sales data about its product are as follows Selling price P60 Variable manufacturing costs per unit 22.50 Variable selling and administrative costs 4.5 Fixed operating costs (60% is manufacturing costs) P159,500 Income tax rate 30% How much should sales be next year if the company wants to earn profit after tax of P23,100, the same amount that it earned last year?Anderson Inc. uses packing machines to prepare their product for shipping. One machine costs $136,000 and lasts about 5 years before it needs to be replaced. The operating cost per machine is $6,500 a year. Ignoring taxes, what is the equivalent annual cost of one packing machine if the required rate of return is 11%? Multiple Choice $49,904 $51,036 $44,298 $43,298 $50,776
