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Feed N Grow Co. manufactures fertilizer for farmers in the prairies. It specialises in fertilizer that helps crops grow during dry seasons. The income
Feed " N Grow Co. manufactures fertilizer for farmers in the prairies. It specialises in fertilizer that helps crops grow during dry seasons. The income statement presented bel sale Required: a) If the sales volume is estimated to increase by 600 tonnes for next year, and if the selling price and cost behaviour patterns remain the same next year, how much net income does Feed "N Grow expect to earn next year? Show all your calculations. b) Assume Feed ' N Grow estimates the selling price per tonne will increase 10% next year due to the popular demand of the product and variable cost will increase by $57 per tonne. To cope with the expected additional demand, the company is going to hire two more administrative assistants at a total cost of $65,000 per year. Compute how many tonnes must be sold next year to earn net income of $1,000,000. Show all your calculations
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