Fundamentals Of Corporate Finance, 9th Edition
9th Edition
ISBN: 9781260052220
Author: Richard Brealey; Stewart Myers; Alan Marcus
Publisher: McGraw-Hill Education
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Question
Chapter 18, Problem 10QP
a.
Summary Introduction
To explain: The balancing item if sales increases by 20% using percentage of sales model.
b.
Summary Introduction
To discuss: The value of the balancing item.
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The gross profit margin indicates how profitable sales have been.
Q.1 Calculate the gross profit margin for Pearson & Litt for 2020.Q.2 Explain the results of the gross profit margin calculation.
Using Goal Seek/Solver and/or What-If Scenarios based on the below income statement, calculate the following
a) the sales amount in order to realize $1,200,000 of net income without changing any of the expense accounts.
b) to realize $1,200,000 without changing revenues and cost of goods sold.
c) What could be the best scenario to achieve NI $1,200,000.
Case Study Questions
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Chapter 18 Solutions
Fundamentals Of Corporate Finance, 9th Edition
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