<span>The company president does not believe that the formula should be altered for fear it will tarnish the company's brand. </span>She prefers that the company spend more on marketing and
increase the price. The company’s accountants believe that if marketing costs are increase
by $400,000 then the company can achieve a selling price of $42 per bottle without losing
any sales. At this price, will the company achieve its target operating income of 40% of
revenue?
Total cost
= $9,600,000
Add:
Increase in marketing costs=
400
,000
Total costs of redesigned table =
$10
,000,000
Revised cost per unit ($10,000,000 ÷ 400,000 units)
= $25
Target cost per unit ($42 × 0.60)
= $25.20
Yes, this proposal allows the company to meet its goal of target costs less than 60% of
revenue and target operating income greater than 40% of revenue.
Answer:
Features
Explanation:
Product features are the things <em>that will provide benefits</em> to the customer. A low price provides the benefit of saving money. Great gas mileage is a feature that provides the benefit of longer times before stopping for gas, helping the planet, and saving money.
Another example: fast internet speeds are a <em>feature </em>with the <em>benefit </em>that you can look up information that you need quickly and easily.
Answer:
Interest expense 2894.7 debit
discount on Bonds Payable 394.7 credit
cash 2500 credit
Interest expense 2906.55 debit
discount on Bonds Payable 406.55 credit
interest payable 2500 credit
Explanation:
We have to solve for the 2013 year which is one year after the issuance ofthe bonds.
We solve for the bond issuance price and then, we construct the bonds schedule and take the numbers from period 3 and 4.
Issuance proceeds: present value fo the coupon payment and maturity at market rate:
C 2,500.000
time 10
rate 0.03
PV $21,325.5071
Maturity 100,000.00
time 10.00
rate 0.03
PV 74,409.39
PV c $21,325.5071
PV m $74,409.3915
Total $95,734.8986
Now we will calcautlethe interest expense by multiplying carrying value by the market value and sutract from the cash outlay to determinate the amortization on the bonds.
Answer:
Lyon sent a sales tax of $1200 to the federal government in April. The introduction for recording the state payment would have included 4.