Business, 27.05.2020 08:58 josephnievesr31

Assume that the company expects sales of each product to decline to 30,000 units next year with no change in unit selling price. Prepare forecasted financial results for next year following the format of the contribution margin income statement as just shown with columns for each of the two products (assume a 32% tax rate). Also, assume that any loss before taxes yields a 32% tax benefit
HENNA CO.
Forecasted Contribution Margin Income Statement
Product T Product O Total
Units $ Per unit Total $ Per unit Total
Sales $16.40 $16.40 $0 $0
Variable cost $9.84 0 $3.28 0 0
Contribution margin $6.56 0 $13.12 0 0
Fixed costs 210,240 564,480 (354,240)
Income before taxes (210,240) (210,240)
Income taxes (tax benefit)
Net income (loss)
Assume that the company expects sales of each product to increase to 68,000 units next year with no change in unit selling price. Prepare forecasted financial results for next year following the format of the contribution margin income statement shown with columns for each of the two products (assume a 32% tax rate). (Round "per unit" answers to 2 decimal places.)

HENNA CO.
Forecasted Contribution Margin Income Statement
Product T Product O Total
Units $ Per unit Total $ Per unit Total
Sales $16.40 $0 $16.40 $0 $0
Variable cost $9.84 0 3.28 0 0
Contribution margin $6.56 0 $13.12 0 0
Fixed costs 210,240 564,480 774,720
Income (loss) before taxes (210,240)
Income taxes (tax benefit)
Net income (loss) $(210,240)
Compute the break-even point in dollar sales for each product.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 00:30

Needs to schedule the staffing of the center. it is open from 8am until midnight. larry has monitored the usage of the center at various times of the day and determined that the following number of computer consultants are required: time of dayminimum number of consultants required to be on duty8 am-noon4noon-4 pm84pm-8pm108pm-midnight6 two types of computer consultants can be hired: full-time and part-time. the full- time consultants work for eight consecutive hours in any of the shifts: morning (8am- 4pm), afternoon (noon-8pm) and evening (4pm-midnight). full-time consultants are paid $14 per hour. part-time consultants can be hired to work any of the four shifts listed in the table. part-time consultants are paid $12 per hour. an additional requirement is that during every time period, there must be at least two full-time consultants on duty for every part-time consultant on duty. larry would like to determine how many full-time and part-time consultants should work each shift to meet the above requirements at the minimum possible cost. formulate this as an lp problem. you must define your variables clearly

Answers: 2

Answer

Business, 22.06.2019 11:10

Use the information below to answer the following question. the boxwood company sells blankets for $60 each. the following was taken from the inventory records during may. the company had no beginning inventory on may 1. date blankets units cost may 3 purchase 5 $20 10 sale 3 17 purchase 10 $24 20 sale 6 23 sale 3 30 purchase 10 $30 assuming that the company uses the perpetual inventory system, determine the gross profit for the month of may using the lifo cost method.

Answers: 1

Answer

Business, 22.06.2019 13:10

Paid-in-capital in excess of par represents the amount of proceeds a. from the original sale of common stock b. in excess of the par value from the original sale of common stock c. at the current market value of the common stock d. at the curent book value of the common stock

Answers: 1

Answer

Business, 22.06.2019 21:20

What business practice contributed most to andrew carnegie’s ability to form a monopoly?

Answers: 1

Answer

You know the right answer?

Assume that the company expects sales of each product to decline to 30,000 units next year with no c...

Questions