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Analyze each of the proposals against the current situation to determine if it will help William achieve his profit goal. ( Enter loss using either
Analyze each of the proposals against the current situation to determine if it will help William achieve his profit goal. Enter loss
using either a negative sign preceding the number eg or parentheses eg Round answers to decimal places, eg
Operating Income
Option $
Option $
Option $
Option $
eTextbook and Media
Attempts: of used
After these initial discussions, William realizes that he has ignored any possible tax effects thus far. He estimates that his business
will be subject to a tax rate. Will any of the proposed scenarios allow him to reach an aftertax income goal of $ If so
which onesRound answers to decimal places, eg
AfterTax Operating Income
Reach AfterTax Income Goal?
Option $
Option $
Option $
Option $William, the owner of a local poster shop, comes to you for help. "We've only been breaking even the past two years, and Im getting
very frustrated! I don't know what to do because I feel like l've already tried to improve our processes as much as possible, but we still
haven't been able to generate a profit. Do you have any suggestions as to how we can turn things around? I just don't think we can even
consider moving forward with this business unless we can earn $ in operating income next year. Even then, we'll have to think
long and hard about what the future holds."
William shares the following information with you, as you ponder different scenarios to help your friend.
After thinking about it for a while, you suggest the following possibilities to help him turn things around.
Lower the selling price by to increase sales volume by
Advertise on the radio and with social media, for a combined cost of $ to increase volume by
Use a more affordable paper on which to print the posters available for $ per unit in combination with a lessexpensive
film to cover the top of the poster available for $ per unit
Instead of paying the salespeople a fixed salary, move to a commissionbased compensation plan save $ in salary;
incur $ per unit sold commission which should increase sales volume by
Analyze each of the proposals against the current situation to determine if it will help WIlliam achieve his profit goal.
Operating income:
Option
Option
Option
Option
After these inital discussions, Willaim realizes that he has ignored any possible tax effects thus far. He estimates that his business will be subject to tax rate. Will any of these proposed scenarios allow him to reach an aftertax income goal of $ If so which ones?
After tax operating Income
Option
Option
Option
Option
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