Cost volume profit of procter and gamble company

Assignment Help Managerial Accounting
Reference no: EM1347405

Procter & Gamble Company is a Cincinnati-based company that produces household products under brand names such as Gillette, Bounty, Crest, Folgers, and Tide. The company's 2006 income statement showed the following (in millions):

Net Sales: $68,222
Costs of Products Sold: $33,125
Selling, General, and Administrative Expense: 21,848
Operating Income: 13,249

Suppose that the cost of products sold is the only variable cost; selling, general, and administrative expenses are fixed with respect to sales. Assume that Procter & Gamble had a 10% increase in sales in 2007 and that there was no change in costs except for increases associated with the higher volume of sales.

Compute the predicted 2007 operating income for Procter & Gamble and its percentage increase. Explain why the percentage increase in income differs from the percentage increase in sales.

Reference no: EM1347405

Questions Cloud

What right have we to burden our children and grandchildren : what right have we to burden our children and grandchildren with these debts while we live high on the hog. Discuss this
Minimum wage legislation : What are your opinion about minimum wage legislation and what kind of a price-control policy is this and who gain?
What is the energy necessary to remove the electron : A circular hole in an aluminum plate is 3.263 cm in diameter at 0.000°C. What is its diameter (in cm) as the temperature of the plate is raised to 129.8°C? Give the answer to four significant figures. The linear expansion coefficient of aluminum i..
Technical means to guarantee data confidentiality : Assess illustrate why technical means to guarantee data confidentiality depend upon trust.
Cost volume profit of procter and gamble company : Procter & Gamble Company is a Cincinnati-based company that produces household products under brand names such as Gillette, Bounty, Crest, Folgers, and Tide. The company's 2006 income statement showed the following (in millions):
Explain what has been happenning in this market : explain how lower coffee bean output in brazil, vietnam, columbia and central america are affecting this market. explain what has been happenning in this market.
Basics of cost-volume-profit : Feather Friends, Inc., distributes the high-quality wooden birdhouse which sells for $20 for each unit. Variable costs are $8 per unit, and fixed costs total $180,000 per year.
What is the utmost value of the electric field : A 100 kg cannon at rest contains a 10-kg cannon ball. When fired, cannon ball leaved the cannon with a speed of 450 m/s. What is the recoil speed of the cannon.
College special policies : Childrens in college are sometimes sold college special policies created for seniors. So, determine is it wise for college Childrens to buy life insurance while they are still in college?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Job descriptions and job functions

What would you include in a job description for a new cashier? How about a sales person? What is included on your job description? Are there functions you perform that are not in your job description?

  Job order cost-process cost systems

Describe the similarities and differences between job order cost and process cost systems.

  Clarification of cvp analysis

Find out  the value for the manager in conducting a cost-volume-profit analysis.

  Prepare general journal entries in general journal form

Prepare general journal entries in general journal form

  Describing cost-volume-profit

Disk City, Inc. is a retailer for digital video disks. The projected net income for the current year is $2,740,000 based on a sales volume of 270,000 video disks.

  About the merger and acquisition activity of the coca cola

Select one acquisition the company has undertaken during recent history and explain details of the deal. About the merger and acquisition activity of the Coca Cola

  Standard costing and variance analysis

Camping for Fun, Inc., produces a variety of camping products on a year-round basis. The best-selling item is a compact portable camping stove made from sheets of rust-free aluminum.

  Knowledge-activity based costing

City of Joseph Commercial Bank hired consultants to compute the costs of three products: checking accounts, personal loans, and the Gold visa card. The consultant identified the following activities, costs and activity drivers (annual data):

  Mcdonald corporation-activity based costing

What is a service or product in McDonald's which can employ activity based costing? What are three activities for activity based costing and the correct cost drivers for them? Give an estimate for application rates of these drivers.

  Job order costing in manufacturing company

Record the preceding events in a horizontal statements model. In the cash flows column, designate the cash flow as operating activities (OA), investing activities (IA), or financing actives (FA)

  Describing of activity based costing

Define and describe activity based costing. Also employ some real-life examples of how companies implement this management tool. Offer some comparisons and contrasts and pros and cons from different stand points on this topic.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd