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Lostsunrise [7]
3 years ago
10

Blanchard Company manufactures a single product that sells for $190 per unit and whose total variable costs are $150 per unit. T

he company’s annual fixed costs are $635,000. The sales manager predicts that annual sales of the company’s product will soon reach 40,500 units and its price will increase to $205 per unit. According to the production manager, variable costs are expected to increase to $145 per unit, but fixed costs will remain at $635,000. The income tax rate is 20%. What amounts of pretax and after-tax income can the company expect to earn from these predicted changes?
Business
1 answer:
iVinArrow [24]3 years ago
4 0

Answer:

The amounts of pretax and after-tax income can the company expect to earn from these predicted changes are $1,795,000  and $1,436,000  respectively.

Explanation:

The sales less the variable cost gives the contribution margin.

The contribution margin less the fixed cost gives the net operating income.  Furthermore, net income is the difference between the total sales and the total costs (fixed and variable).

Both sales and variable cost are dependent on the number of units sold.

with these expected changes,

Pretax Income

= 40,500($205 - $145) - $635,000

= $1,795,000

After tax income

= 80% * $1,795,000

= $1,436,000

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notsponge [240]

Answer: gross material requirements plan

Explanation: A material requirements plan has been developed for product A based on the product structure of A and the lead-time needed to obtain each component. Planned order releases of a parent item are used to determine gross requirements for its component items.

hope i helped please mark brainliest!

4 0
3 years ago
Oliver Industries is evaluating the manufacturing process for one of their products. Oliver has determined that the process has
Ne4ueva [31]

Answer:

D) has sunk costs of $6,000

Explanation:

Sunk cost is a cost which does not effect the financial decision, as this cost has already been incurred, and now it cannot be revoked.

Here maintenance cost is a regular expense which has to be incurred, and its not the cost which has already been incurred, same applies for operating cost.

Two years ago firm had spent $6,000 upgrading the equipment which was incurred earlier and now that cost cannot be revoked, further it will not lay any impact on any of the decisions made by the financial management.

Further amount to be spend of $5,000 has yet to be incurred and the decision to incur such cost can also be avoided, therefore it is not a sunk cost.

In this scenario D) has sunk sunk cost of $6,000

8 0
3 years ago
Handy Home sells windows and doors in the ratio of 7:3 (windows:doors). The selling price of each window is $111 and of each doo
Setler [38]

Answer:

1.

Selling Price $156

2.

Variable cost $101.25

Break-even 9,500 units and $1,482,000

Explanation:

Compposit unit unit is a unit made according to the propostion to sale. Different products are combined to make a sales mix for composit unit.

1.

Selling price per composit unit = [ ( 7 x 111 ) + ( 3 x 261 ) ] / 10 = 1560 / 10 = $156

2.

Variable cost per composit unit = [ ( 7 x 68 ) + ( 3 x 180.5 ) ] / 10 = 1,017.5 / 10 = $101.75

Contribution per composit unit = Selling Price - variable cost = $156 - 101.75 = $54.25

Break-even Point = Total Fixed cost / Contribution per unit = $515,375 / 54.25 = 9,500 units

Break-even Point ($ value )= 9,500 x 156 = $1,482,000

8 0
3 years ago
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kondor19780726 [428]

In decades past, the development and implementation of marketing strategy was about b.creating a large number of transactions in order to maximize a firm's market share.

<h3>What was the focus of marketing strategy in the past?</h3><h3 />

Companies wanted to increase the number of sales transactions they had as they believed it would lead to a higher market share.

These days however, companies try to retain their customers over the long term so they can have a sustainable revenue base.

Options for this question are:

a.aggressive selling in order to maximize sales volume.

b.creating a large number of transactions in order to maximize a firm's market share.

c.making products of moderate quality that could be sold at the lowest price possible.

d.conducting extensive research to discover customer needs.

Find out more on marketing strategies at brainly.com/question/25640993.

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8 0
2 years ago
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TiliK225 [7]
<span>Is called adaptation strategy. Adaptation is the process of modifying an existing product so it is suitable for different customers or markets. An adaptation strategy is important for companies, because it ensures that the product meets local cultural and regulatory requirements.</span>
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