Estimating sales and profit after tax

Reference no: EM13115375

The company is "Ties for U" and my boss wants to estimate profits for next year(2008) and then determine the percentage growth from 2007 to 2008.

Some assumptions:

-The marketing folk expect the total market for ties in 2008 to be 10 million ties.

-The expect "Ties for U" to capture 20% of the market next year.(how many ties will "Ties for U" sell?)

-The average selling price for "Ties for U" is $300.(now you can calculate the sales)

-Total expenses(cost of goods, marketing etc) estimated to be 60% of sales.

-Tax rate on profits is 50%

Questions:

What is your estimate for 2008 sales($)?

What is your estimate of 2008 profits after tax?

What is the percentage increase in 2008 profits after tax vs 2007 profit after tax of $110 Million?

Reference no: EM13115375

Questions Cloud

Identify the element of period two : Identify the element of Period 2 which has the following successive ionization energies, in kJ/mol. IE1: 1314, IE2: 3389, IE3: 5298, IE4: 7471, IE5: 10992, IE6: 13329, IE7: 71345, IE8: 84087.

What is the elevation of lower point : A pre- engineering base line was run down a very steep hill.rather than measure horizontaily down hill with steel tape: surveyor measured the vertical angle with the theodolite and slope distance with 16m steel tape.

Determining time value of money : You just turned 25. you plan on saving a equal amount in your 401K at the of each year for 40 years (your 65th birthday). You expect to earn 9% pa during this time frame.

Bankruptcy and financial distress : Which of the following industries is likely to have the lowest costs of financial distress? Which of the following industries likely to have the highest costs of financial distress?

Estimating sales and profit after tax : What is your estimate for 2008 sales($)? What is your estimate of 2008 profits after tax? What is the percentage increase in 2008 profits after tax vs 2007 profit after tax of $110 Million?

Problem of ira math : If a 22 year (Sam) invested $4,000/year into a Roth IRA until his 30th year, what will the value of that IRA be in the 65th year, assuming 8% per year?

Write an essay that provides a well-argued opinion : Write an essay that provides a well-argued opinion, based on research that either supports or argues against your hypothesis.

Total dollar return and rate of return : If I bought 400 shares of AllTell stock for $15 per share and one year later, sold the stock for $21 per share, and receive a $0.90 cash dividend:

Determining transaction fee of underwriting : Sherman Brothers, Inc., sold 4 million shares in its IPO, at a price of $18.50 per share. Management negotiated a fee (the underwriting spread) of 7% on this transaction.

User Account

All Pages