A company produces and sells several products for gross sales ( income ) of 2 . 2
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Question:
A company produces and sells several products for gross sales income of million dollars for FY Returns and allowances are percent of gross sales, reducing the income for net sales.
Marketing, management, and general expenses MM&G are figured to be of the net sales. Cost of goods sold is the sum of labor of gross sales materials of gross sales and overhead. Overhead is figured to be variable overhead of the combined cost of labor and materials plus fixed overhead $
Gross profit is the difference between net sales and cost of goods sold. To figure the profit before tax, MM&G expenses need to be subtracted from the gross profit. Finally, there are the Federal taxes and state taxes that need to be considered, but these are only assessed if there is indeed a profit; if the profit before tax is zero or below a loss from operations the tax is zero Hint: you will need to use the IF function here If included, then Net Income is equal to profit before tax federal and sales tax.
Assume that the Federal tax rate is and gross sales total $ what would the change be in net income?
As in question assume that the Federal tax rate is ; but this time, assume that gross sales are only $ What will be the change in net income?
What will the change in net income be for a scheme estimated to reduce returns and allowances to of gross sales but would likely increase the MMandG fraction to
What would be the change in net income if fixed overhead is doubled?
If State taxes are reduced by half, what would be the after tax profit?
What would the net income or loss be if sales dropped to $ and Fixed Overhead increased to $
Assume that the Return Fraction increases to What would be the Profit After Tax?
New, more efficient equipment can be purchased that would lower the variable overhead cost fraction to but would raise the fixed overhead to $ What would be the net income if the equipment were purchased?
What would be the change in net income if gross sales were $
GoalSeeking Questions:
What amount would gross sales have to be in order for the company to show a net income of zero the breakeven sales point
What gross sales are needed to generate an after tax profit of $
What would the change in gross sales be if the company had a net income loss of $
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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