Mac Tools is trying to find out if increasing sales or cutting costs is more effective. Mac

Fantastic news! We've Found the answer you've been seeking!

Question:

Mac Tools is trying to find out if increasing sales or cutting costs is more effective.

Mac Tools has a profit margin of 9.06432749%, COGS of 126,000,000, sales of 171,000,000, pre-tax earnings of 15,500,000, merchandise inventory of 12,750,000 and a total assets of 34,000,000.

How much addition sales would they have to generate to have the same effect on pre-tax earnings as a 10% decrease in merchandize cost?

Related Book For answer-question

Fundamental Managerial Accounting Concepts

ISBN: 978-0078110894

6th Edition

Authors: Edmonds, Tsay, olds

See More Books

Posted Date: Apr 28, 2021 11:02 PM

See More Questions

If a random sample of 41 items produces x = 124.4 and s = 17.6, what is the 98% confidence interval for ? Assume x is normally distributed for the population. What is the point estimate? (Round your...
In December 200B, Becky is trying to find out whether she is a monthly or semiweekly depositor for FICA (OASDI and Medicare) and federal income tax for 20XC. Please advise based on the following...
If a family is trying to find their competitive advantage, how can the familiness assessment approach help them? How is the familiness approach a more formal application of the entrepreneurial...
Medallion and RIEF (Renaissance Institutional Equity Fund) are both managed by Renaissance Technologies. How do they differ in terms of asset classes, dollar capacity, average holding period of each...
A sports goods manufacturer makes baseball and hockey gloves. Suppose now is the end of December and the manager wishes to plan production for the next three quarters. The forecast demand for...
1. List possible objects in the registration system, including their attributes and methods. 2. Identify possible use cases and actors. 3. Create a use case diagram that shows how students register....
I spent time with you. It seems that this deed is out of character for you. You were not awarded your normal annual bonus. I would probably feel the same. Is that what happened? You normally wouldnt...
The cash account for All American Sports Co. on April 1, 2012, indicated a balance of $23,600. During April, the total cash deposited was $80,150, and checks written totaled $72,800. The bank...
ces Direct labor-hours Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour 35,000 Department Molding...
A 95% confidence interval for the proportion of viewers of a certain reality television show who are over 30 is (0.26, 0.35). Suppose the show's producers want to test the hypothesis Ho P = 0.25...
Peach Company uses a weighted-average process costing system. Company records disclosed that the firm completed 40,000 units during the month and had 10,000 units in process at month-end, 20%...
1. How effective is Lysistrata as an antiwar work? In what ways does it make its argument against the war clear? How might people of that time react to it? How about people now? 2. What do the...
7. What is the solution to each of the following arithmetic expressions? a. 3+4 2 +9 b. 48/6 4-3 c. 40-6^2/3 d. 71 Mod 9 e. 9\4+3 f. 2^3+ (8-5) g. (15 Mod 2) - 1 +4* (16\5)
Which method below may be used to file project documentation in a consistent manner? O Require copies of files to be given to each stakeholder. Require the same number of files to be stored for every...
Which method is more effective for finding a specific value in a large dataset: using the 'Find' feature or sorting the data? Select the correct response: Changing the cell format Using 'Find'...
What would be the most effective strategy if a speaker were trying to persuade an audience about the human contribution to global warming?
Explain the digital media strategy you want to implement at Apple Explain monetization channel for digital media strategy
Interest Compounded Annually. When P dollars is invested at interest rate i, compounded annually, for t years, the investment grows to A dollars, where A = P(1 + i) t . Trevor's parents deposit $7800...
Determining labor price and usage variances Lakeshas Doll Company produces handmade dolls. The standard amount of time spent on each doll is 1.5 hours. The standard cost of labor is $7.72 per hour....
The following information was drawn from the accounting records of Connor Manufacturing Company. During the accounting period, Connor paid $16,000 to purchase raw materials, $15,000 for direct labor,...
Verna Salsbury tells you that she thinks the terms fixed cost and variable cost are confusing. She notes that fixed cost per unit changes when the number of units changes. Furthermore, variable cost...
Avon Technical Institute has used the following budgeted amounts for its controllable costs during 2020. Required (a) Prepare a budget performance report for 2020 by preparing a budget for each cost...
Hua Chang Resort has prepared the following budgeted amounts for its costs for 2020. Hua Chang has 32 luxury rooms available in the resort. It operates 365 days of the year. Required (a) Prepare a...
The Cloudlands Spa Resort has 100 residential villas to accommodate guests. The accountant for the resort has asked you, the marketing manager, to prepare a budget for expected relaxation treatment...

Mac Tools is trying to find out if increasing sales or cutting costs is more effective. Mac

Question:

Expert Answer:

Merchantise inventory 12750000 Total assets 34000000 Sales ... View the full answer

Fundamental Managerial Accounting Concepts

Students also viewed these accounting questions