What would have been his new profit for the year

Assignment Help Accounting Basics
Reference no: EM133138678

Question - Chan had considered spending an additional £14,400 on marketing in 2020. He predicted that such an additional investment would have increased the sales and production volume in the year to 138,000 units at a better selling price of £3.68. He also predicted there would have been no other changes to his fixed costs for the year nor any changes to the variable cost per unit.

i. If his predictions had proved correct, what would have been his new profit for the year?

ii. If his predictions had proved correct, what would have been his new breakeven point, in units, for the year?

Reference no: EM133138678

Questions Cloud

Internship experience successes : In a based on your internship course experiences and the learning objectives achieved, review your internship experience successes
Ambiguous language on performance outcomes : Everyone has encountered this infamous placeholder on the job description: "other duties as assigned." What are the implications of this ambiguous language on p
For starbucks-what important strategic-operational : What steps can company take now in order to ensure profitability in future years? what important strategic, operational, or tactical steps would you recommend
Determine the contribution margin ratio : Contribution Margin - Harry Company sells 16,000 units at $20 per unit. Variable costs are $14.40 per unit, Determine the contribution margin ratio
What would have been his new profit for the year : Chan had considered spending an additional £14,400 on marketing in 2020. What would have been his new profit for the year
What manufacturing cost does el corte inglés have : The Company EL CORTE INGLÉS has direct materials with a total of L.56,800; direct labor: L.39,600; What manufacturing cost does EL CORTE INGLÉS have
Marketing plan for existing company : In this unit, you will continue to build upon your marketing plan for an existing company and a product or service of your choice.
What would be Johns cost of goods sold under FIFO : John Company uses the LIFO cost flow assumption. If John's cost of goods sold using LIFO was $28,900 in the year 2019, what would be Johns's cost of goods sold
Compare the attitudes of two cohorts of people : Compare and contrast the attitudes of two cohorts of people; one that consists of five people that rarely use social media and one cohort of five people

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