Discuss tharp company operates a small factory

Assignment Help Accounting Basics
Reference no: EM131753341

Tharp Company operates a small factory in which it manufactures two products: C and D. Production and sales results for last year were as follows.



Units sold 9,100 19,000
Selling price per unit $94 $75
Variable cost per unit 47 41
Fixed cost per unit 20 20

For purposes of simplicity, the firm averages total fixed costs over the total number of units of C and D produced and sold.

The research department has developed a new product (E) as a replacement for product D. Market studies show that Tharp Company could sell 11,900 units of E next year at a price of $114; the variable cost per unit of E is $45. The introduction of product E will lead to a 11% increase in demand for product C and discontinuation of product D. If the company does not introduce the new product, it expects next year's results to be the same as last year's.

Compute company profit with products C & D and with products C & E.

Reference no: EM131753341

Questions Cloud

Discuss the graduate economics courses : Determine the activity cost of instruction per student in both the introductory and the graduate economics courses
Determine the aerosol light absorption coefficient : Is there any evidence that the population variance in aerosol light absorption coefficient is greater in Africa than in South America?
Confidence interval for the mean of all values : The 95% confidence interval for the mean of all values of y for which x = x0 will be wider than the 95% confidence interval for a single y for which x = x0.
Estimate the cost of marketing of goods and service : BSBMKG607 - MANAGE MARKETING RESEARCH - Identify the consumer response to the companys product and Evaluate the reputation of the company in the market
Discuss tharp company operates a small factory : Tharp Company operates a small factory in which it manufactures two products
Given the linear correlation coefficient : Given the linear correlation coefficient r = 0.543 and the sample size n = 25, determine the critical values of r and use your finding to state whether
Mathematical equation unit contribution margin break-even : Mathematical Equation Unit contribution margin Break-even point
Bureau of labor statistics for february : What is the labor force participation rate? The labor force participation rate is Answer to 1 decimal place. percent Item Millions
Prepare the income statement : Prepare the Income Statement, Statement of Owner's Capital and Balance Sheet for Ace Lawn

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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