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larisa [96]
3 years ago
7

Grover has forecast sales to be $125,000 in February, $135,000 in March, $150,000 in April, and $140,000 in May. The average cos

t of goods sold is 70% of sales. All sales are on made on credit and sales are collected 60% in the month of sale, and 40% the month following. What are budgeted cash receipts in March?
Business
2 answers:
FinnZ [79.3K]3 years ago
6 0

Answer:

The budgeted cash receipts for March is $131000

Explanation:

The cash receipts in March will contain the cash received from accounts receivable for the amount of 40% of the sales value for February and 60% for the sales value of March. Thus the cash receipts in March will be,

Cash receipts-March = 40% * February sales revenue + 60% * March sales revenue

Cash receipts-March = 0.4 * 125000 + 0.6 * 135000

Cash receipts-March = $131000

PolarNik [594]3 years ago
3 0

Answer:

$206,000

Explanation:

It is assumed that cost of sales effect is nil and its outflow also not clearly defined for purchases made during the period.

Download xlsx
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The cost of overestimating demand is usually harder to determine than the cost of underestimating demand. Group of answer choice
forsale [732]

Answer:

The statement is: False.

Explanation:

In supply chain management, incremental analysis is in charge of determining the cost of ordering one more additional unit of a product over the cost of no requesting that additional unit. The cost of overstimulating demand is the loss of ordering one additional unit and discovering that it cannot be sold. The cost of underestimating demand is the opportunity loss for nor requesting one additional and discovering it could have been sold.

<em>The cost of underestimating demand is more difficult to determine than the cost of overestimating demand because underestimating demand because it involves customer's desires</em> on purchasing a product when not having the resources to do so.

8 0
3 years ago
Horatio Alger has just become product manager for Brand X. Brand X is a consumer product with a retail price of $1.00. Retail ma
german

Answer:

Horatio Alger

1. The unit contribution for Brand X is = $0.79

2. Brand X's break-even point (in units) = 1,816,456 (in sales dollars) = $1,816,456

3. The market share that Brand X needs to break-even

= 9.1%

4. Brand X's profit impact is 48.9% or $2,347,000

a. If the advertising budget is raised, units that Brand X have to sell to break-even is:

= 2,449,367 units

b. The units that Brand X have to sell in order for it to achieve the same profit impact that it did this year is:

= 5,865,886 units

c. Brand X's market share have to be 25.5% next year for its profit impact to be the same as this year.

d. Brand X's market share have to be 16.2% for it to have a $1 million profit impact.

5. a. Break-even sales units = 2,474,138 units

b. Break-even sales units = 6,520,690 units

c. Brand X's market share have to be 32.6% for its profit impact to remain at this year's level.

d. Brand X's market share have to be 15.4% to generate a profit impact of $350,000.

Explanation:

a) Data and Calculations:

Retail price of Brand X = $1.00

Units sold = 24% of 20 million = 4,800,000 units

Total sales revenue =              $1.00  $4,800,000

Variable costs:

Manufacturing                         $0.09

Selling commision (10% of $1) $0.10

Other selling expense            $0.02

Total variable costs per unit   $0.21  $1,008,000

Contribution margin per unit $0.79  $3,782,000

Fixed costs:

Manufacturing                $900,000

Advertising                       500,000

Brand X manager's salary 35,000    $1,435,000

Net income =                                     $2,347,000

Fixed costs/Contribution margin per unit = $1,435,000/$0.79 = 1,816,456 units

The market share that Brand X needs to break-even

= 1,816,456/20,000,000

= 9.1%

Brand X's profit impact = 48.9% ($2,347,000/$4,800,000 * 100)

With increase in advertising budget to $1 million next year,

a. Units to break-even = $1,935,000/$0.79 = 2,449,367 units

b. Units to achieve same profit impact:

Sales increased by 15% (3/20 * 100)

Net income will increase to = $2,699,050 ($2,347,000 * 1.15)  to make the same impact

Therefore, the units to achieve same profit impact = ($1,935,000 + $2,699,050)/$0.79

= $4,634,050/$0.79

= 5,865,886 units

Market share next year = 25.5% (5,865,886/23,000,000)

Market share to achieve $1 million profit impact

= (FC + Profit target)/$0.79

=  $1,935,000 + $1,000,000)/$0.79

= $2,935,000/$0.79

= $3,715,190

= $3,715,190/$23,000,000 * 100 = 16.2%

Fixed costs = $1,435,000

Retailer's margin raise = 40% from 33%, a 21.2% increase or decrease in price

Therefore, the new selling price = $1.00 * (1 - 0.212) = $0.79

Variable cost = $0.21

Contribution margin = $0.58

To break-even, FC/Contribution margin per unit

= $1,435,000/$0.58

= 2,474,138 units

Break-even units to achieve profit of $2,347,000 = ($1,435,000 + $2,347,000)/$0.58

= 6,520,690 units

Sales = $5,151,345 (6,520,690 * $0.79)

Market sales revenue = $15,800,000 (20,000,000 * $0.79)

= $5,151,345/$15,800,000 * 100

= 32.6%

Market impact of $350,000

Break-even units ($1,435,000 + $350,000)/$0.58

= 3,077,586 units

Sales revenue = $2,431,293 (3,077,586 * $0.79)

Market revenue = $15,800,000 (20,000,000 * $0.79)

Market share = $2,431,293/$15,800,000 * 100

= 15.4%

4 0
3 years ago
Marcy and Liz developed a new jewelry design. They were fortunate to get the attention of a large online retailer who was willin
Tju [1.3M]

The retailer was asking the designers to agree to <u>Exclusive distribution</u>.

<u>Explanation:</u>

Exclusive distribution is characterized as the arrangement under which a participant is a supplier and provider. It specifies that the seller can not offer their service or item to some other group. It attaches the contract that the commodity must be distributed to an exclusive seller. The retailer asks developers for exclusive supply as per the situation specified in the discussion. Retailer does not want the jewelry design to be sold to any other outlet or retailer for successful sale. Thus agreement on this matter is suggested by the retailer.

3 0
3 years ago
Shannon signs a contract with tevin, an unlicensed contractor, to build a deck and gazebo at the rear of her house. this contrac
Bingel [31]

The answer is noone.

8 0
3 years ago
invisible hand in Adam Smith's theory turns self-directed gain into social and economic benefits for all. true false
timofeeve [1]

Answer:

TRUE

Explanation:

Adam Smith 'Laissez Faire' Theory implies : Markets as free mechanisms are best, they are guided by self interest which tends to bring best socio economic welfare by increasing wealth. The market 'Invisible Hand' acts as an automatic stabiliser to any economic discrepancy & any government intervention is unnecessarily distortionary.

3 0
3 years ago
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