The sales manager believes the company could increase sales

Assignment Help Accounting Basics

Reference no: EM13577731

FOX COMPANY
PROJECTED INCOME STATEMENT
FOR THE YEAR ENDING DECEMEBER 31, 2004

Revenues		$400,000

Variable Costs:
Variable manufacturing costs	$100,000
Variable selling costs	60,000
Total Variable Costs		160,000
Contribution Margin		$240,000

Fixed Costs:
Fixed manufacturing costs	$110,000
Fixed selling and administrative costs	70,000
Total Fixed Costs		180,000
Income		$60,000

The projected income statement was based upon sales of 20,000 units. Fox has the capacity to produce 25,000 units during the year.

Determine breakeven point in units.
The sales manager believes the company could increase sales by 3,000 units if advertising expenditures are increased by $30,000. Determine the effect on income if the company increases advertising expenditures.

Reference no: EM13577731

Questions Cloud

Identify the sampling technique used to obtain this sample : identify the sampling technique used to obtain this samplea group of 240 adults are given numbers from 1-40. a ball is

Determine the total cost of ending work in process : solex company produces a high-quality insulation material that passes through two production processes. data for june

Given a sample size of 22 with sample mean 7262 and sample : given a sample size of 22 with sample mean 726.2 and sample standard deviation 85.3 we perform the following hypothesis

Quantacc carries fixed assets at revalued amounts fixed : quantacc ltd. began operations on january 1 2011 and uses ifrs to prepare its consoliated financial statements.

The sales manager believes the company could increase sales : fox companyprojected income statementfor the year ending decemeber 31 2004revenues400000variable costsvariable

A determine the number of classes b determine the interval : q1. describing data frequency distribution and graphic presentationsyou are the parts manager for a local dumb phone

Supreme fitness club uses straight-line depreciation for a : supreme fitness club uses straight-line depreciation for a machine costing 26400 with an estimated four-year life and a

Podsednik company has gathered the following information : podsednik company has gathered the following information. units in beginning work in process -0- units started into

Here are comparative balance sheets for syal company syal : here are comparative balance sheets for syal company. syal company comparative balance sheets december 31 assets 2012

User Account

All Pages