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Citrus2011 [14]
3 years ago
8

Use goal seek to answer this question. All else equals, to have a net income of 20,000, the COGS margin percentage must be _____

_, and the gross profit must be ______. Review Later
Business
1 answer:
Lelechka [254]3 years ago
4 0

Answer:

Use goal seek to answer this question. All else equals, to have a net income of 20,000, the COGS margin percentage must be <u>40%</u>, and the gross profit must be <u>$17,250</u>.

Explanation:

The income statement is missing, so I looked it up and the information given was:

  • Revenue 100,000
  • COGS 40,000
  • Gross Profit 60,000
  • Salaries
  • Marketing
  • Rent
  • Earnings Before Tax 23,000
  • Income Tax 25%
  • Net Income ?

Since COGS are$40,000 and total sales are $100,000, the COGS margin percentage = 40,000 / 100,000 = 40%

Since earnings before taxes are $23,000 and taxes are 25%, then net income = $23,000 x (1 - 25%) = $23,000 x 75% = $17,250

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our business plan calls for sales of $45,000 in year 1 with compound growth of 30% per year thereafter. What are your projected
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Calculate the percentage rate management fees on the following: $575 adjusted per-unit fee, 50 total units, $600,000 annual gros
arlik [135]

Answer:

19.1% management rate.

Explanation:

Adjusted fee charge per unit = 575

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Net after feel charge on goods = 600000 - 28750 = $571250

15% vacancy and loss rate = .15 * 571250 = $85687.5

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8 0
3 years ago
Sunland Company manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcyc
Andreyy89

Important dsiclamer: there was a type in the question you enter 26,000 while in the textbook is for 20,000

Answer:

a. Decrease $1,200,000

Explanation:

Income before internal transfer:

revenue 3150

cost        1050

gross     2100

fixed      (2100)

operating     0

external engine purchase (3000)

net (3000)

After internal change:

revenue 1050

cost       (960)

gross profit  90

fixed     (2100)

operating (2010)

internal engine purchase (1,050)

net    (3,060)

difference -3060--3000 = 60

20,000 units x 60 = 1,200,000

8 0
3 years ago
In the context of ABC inventory analysis, which of the following statements is true of class A items? a. They are best managed b
vlabodo [156]

Answer:

c. They account for a larger dollar value than class C items

Explanation:

The ABC inventory analysis is a method of classifying inventory in three main groups: A, B and C, where group A items include items that are most valuable and group C items the least valuable ones.

Conceptually similar to the Pareto principle, this method revolves around the fact businesses should focus on a limited scope of products, services or procedures that bring the most profit in comparison to other products/services.

Since group A items are critical to supply chain success, they require close monitoring by the operations managers and are rarely managed by wholly automated systems.

Like in the Pareto principle, A items usually have 10-20% share in the total item share, while they bring 70-80% of total profit.

5 0
3 years ago
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