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svp [43]
3 years ago
14

Calculate the growth rate of the company's EBIT from 2005 to 2006:2005:Sales:15,000,000COGS:12,000,000SG&A:500,000Interest E

xpense: 100,0002006:Sales:20,000,000COGS:16,000,000SG&A:1,000,0000Interest Expense: 100,000A) 12.5%B) 20.0%C) 50%D) 33.3%E) 20.83%
Business
1 answer:
Y_Kistochka [10]3 years ago
3 0

Answer:

B) 20.0%

Explanation:

2005:

Sales:                    15,000,000

COGS:                  (12,000,000)

SG&A:                   <u>(500,000)</u>

EBIT                      2,500,000

2006:

Sales:                    20,000,000

COGS:                  (16,000,000)

SG&A:                  <u>(1,000,0000) </u>

EBIT                      3,000,000

Growth rate = ((3,000,000 - 2,500,000) / 2,500,000 ) x 100 = (500,000 / 2,500,000 ) x 100 = 20%

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Connor Company produces speaker systems for cars. Estimated sales (in units) in January are 40,000; in February 37,000; and in M
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Answer:

Our answer is E 114,420

Explanation:

Production budget:    

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Budgeted sales units  40000   37000           34000

Add: Ending inventory        12950   11900  

Total requirement         52950   48900  

Less: Beginning inventory 14000    12950  

Budgeted production units 38950 35950  

Purchase budget of Box:    

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Budgeted production  38950 35950  

Bx required per unit   3          3  

Total requirement of Boxes 116850 107850  

Add: Ending inventory         21570  

Total boxes needed  138420  

Less: Beginning inventory 24000  

Budgeted Purchase boxes 114420  

Answer is E. 114420    

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