1.
| Baldwins product Best has material costs that are rising from $6.82 to $7.82. Assume that period costs and other labor costs remain unchanged. If Baldwin decides to absorb the cost and not pass any on to its customers in the form of raised prices how many units of product Best would need to be sold next round to break even on the product? |
| Select: 1 |
| |
2.
| Of Chester Corporations products, which earned the lowest Net Margin as a percentage of its sales? |
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nnual Report Round: 3 Dec. 31, 2019 C59559 2019 Income Statement 2019 Common Total (Product Name:) Bit Bolt S18,594 S40,533 S41,465 533,648 S38,03e 523,167 S0 $0 $195,448 100.0% riable Costs S0 S0 542.370 $30.105 51,793 21.7% 41.0% 0.9% 63.8% Labor Material 52,071 9,042 9,743 5,212 S10,613 54,688 58,584 17,971 S17,14412,398 S18,227 59,782 nventory Carry otal Variable 334 58,989 27,385 S27,240 19,131 S27,053 14,470 S372 S353 $521 S212 $0 $124.26 59,605 13,149 S14,228 S14,516 S10,985 58,697 $71,178 36.4% argin eriod Costs S0 S0 53,833 4,750 2,280 2,147 S52,657 52,457 5114 51,140 1,140 $1,140,140 S1,140 1,140 900 S343 57,231 7,490 56,887 6,958 5,25 54,953 $18,104 4,039 56,840 $7.900 52,892 $39,774 9.3% 2.1% 3.5% 4.0% 1.5% 20.4% G&A: R&D S983 973 S973 Promotions Sales 51,000 S600 900 51,000 275 51,900 S813 52,200 S498 otal Period Margin S0 $31,404 16.1% 52,374 5,650 7,33 7,55 4,730 53,744 Direct Labor: Labor costs incurred to produce the Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D efinitions: Sales: Unit ssles times list price. $8.111 $23,293 53,417 $13,794 $2.129 579 53,874 4.1% 11.9% 1.7% 7.1% 1.1% 0.0% 2.0% that was sold. Inventory Carry Cost the cost to carry unsold goods in inventory. EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit epartment expenditures for each product. Admin. Administration overhead is estimated at 1.5% sales. Promotions: The promotion budget for each product Sales: The sales force budget for ach product. Other. Charges not included in other categories such as Fees, Write Offs, and rage firms to issue new id to investment bankers and broke or bonds plus consulting fees your instructor might assess. Write-offs include the loss you OM. The fees include money pai t experience when you sell capscity or liquidate inventory as the result of eliminating a Variable Margins 2008 Baldwin n line. If the amount appears as a negative amount, then you actually made money on he liquidation of capacity or inventory. EBIT: Earmings Before Interest and Taxes. Short Term nterest Interest expense based on ast years current debt, including short term debt, long term 50.0% 40.0% 300% 200% 10.0% 0.0% tes that have become due, and emergency loans. Long Term Interest: Interest paid on ng bonds. Taxes: Incom e tax based upon a 35% tax rate. Profit Sharing: Profits shared employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit nnual Report Round: 3 Dec. 31, 2019 C59559 2019 Income Statement 2019 Common Total (Product Name:) Bit Bolt S18,594 S40,533 S41,465 533,648 S38,03e 523,167 S0 $0 $195,448 100.0% riable Costs S0 S0 542.370 $30.105 51,793 21.7% 41.0% 0.9% 63.8% Labor Material 52,071 9,042 9,743 5,212 S10,613 54,688 58,584 17,971 S17,14412,398 S18,227 59,782 nventory Carry otal Variable 334 58,989 27,385 S27,240 19,131 S27,053 14,470 S372 S353 $521 S212 $0 $124.26 59,605 13,149 S14,228 S14,516 S10,985 58,697 $71,178 36.4% argin eriod Costs S0 S0 53,833 4,750 2,280 2,147 S52,657 52,457 5114 51,140 1,140 $1,140,140 S1,140 1,140 900 S343 57,231 7,490 56,887 6,958 5,25 54,953 $18,104 4,039 56,840 $7.900 52,892 $39,774 9.3% 2.1% 3.5% 4.0% 1.5% 20.4% G&A: R&D S983 973 S973 Promotions Sales 51,000 S600 900 51,000 275 51,900 S813 52,200 S498 otal Period Margin S0 $31,404 16.1% 52,374 5,650 7,33 7,55 4,730 53,744 Direct Labor: Labor costs incurred to produce the Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D efinitions: Sales: Unit ssles times list price. $8.111 $23,293 53,417 $13,794 $2.129 579 53,874 4.1% 11.9% 1.7% 7.1% 1.1% 0.0% 2.0% that was sold. Inventory Carry Cost the cost to carry unsold goods in inventory. EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit epartment expenditures for each product. Admin. Administration overhead is estimated at 1.5% sales. Promotions: The promotion budget for each product Sales: The sales force budget for ach product. Other. Charges not included in other categories such as Fees, Write Offs, and rage firms to issue new id to investment bankers and broke or bonds plus consulting fees your instructor might assess. Write-offs include the loss you OM. The fees include money pai t experience when you sell capscity or liquidate inventory as the result of eliminating a Variable Margins 2008 Baldwin n line. If the amount appears as a negative amount, then you actually made money on he liquidation of capacity or inventory. EBIT: Earmings Before Interest and Taxes. Short Term nterest Interest expense based on ast years current debt, including short term debt, long term 50.0% 40.0% 300% 200% 10.0% 0.0% tes that have become due, and emergency loans. Long Term Interest: Interest paid on ng bonds. Taxes: Incom e tax based upon a 35% tax rate. Profit Sharing: Profits shared employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit
