6. Dexter Corporation projects the following units and selling prices: Year 1 Year 2 1,500 $12...

 

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6. Dexter Corporation projects the following units and selling prices: Year 1 Year 2 1,500 $12 Year 3 Year 4 Unit sales Selling price per unit 1,000 $10 2,000 $15 3,000 $18 Please calculate Dexter's projected or proforma sales. 7. Continuing from the prior problem, Dexter has the following fixed cost per year and variable cost per unit each year: Year 1 Year 2 Year 3 Year 4 Annual fixed costs Variable costs per unit $2,000 $5 $2,100 $6 $2,200 $8 $2,400 $9 Assuming these are all the costs for Dexter. Please calculate Dexter's projected or proforma profit. Knowing what you now know about fixed and variable costs, assume that you read these two 8. headlines: Comcast (an internet supplier with high fixed and low variable costs in its internet operations) expects to sign up 200,000 new internet subscribers this month for $50 per month or $600 per year for a total increase in sales of $120,000,000 per year. Kroger (a large grocery store operation with high variable costs) expects its sales to increase $120,000,000 this year. Assume that in both situations the increase is within the relevant range of operations and no additional capacity will need to be added. Which of these two companies will benefit the most financially? Why? 6. Dexter Corporation projects the following units and selling prices: Year 1 Year 2 1,500 $12 Year 3 Year 4 Unit sales Selling price per unit 1,000 $10 2,000 $15 3,000 $18 Please calculate Dexter's projected or proforma sales. 7. Continuing from the prior problem, Dexter has the following fixed cost per year and variable cost per unit each year: Year 1 Year 2 Year 3 Year 4 Annual fixed costs Variable costs per unit $2,000 $5 $2,100 $6 $2,200 $8 $2,400 $9 Assuming these are all the costs for Dexter. Please calculate Dexter's projected or proforma profit. Knowing what you now know about fixed and variable costs, assume that you read these two 8. headlines: Comcast (an internet supplier with high fixed and low variable costs in its internet operations) expects to sign up 200,000 new internet subscribers this month for $50 per month or $600 per year for a total increase in sales of $120,000,000 per year. Kroger (a large grocery store operation with high variable costs) expects its sales to increase $120,000,000 this year. Assume that in both situations the increase is within the relevant range of operations and no additional capacity will need to be added. Which of these two companies will benefit the most financially? Why?

Answer rating: 100% (QA)

Solution Answer 6 7 Year 1 Year 2 Year 3 Year 4 Unit sale... View the full answer