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this is the rest of the questions. I only need the first problem i sent completed. Assume Drake wants a desired net income (DNI) of
this is the rest of the questions. I only need the first problem i sent completed.
Assume Drake wants a desired net income (DNI) of $56,000 after tax and the current tax rate is 20%. If advertising is increased by $16,000. How many units will it have to sell to reach the desired net income of $56,000 after tax? Show and label your work. CVP Analysis The Tricia Drake Company produces and sells only one product-toy dolls. Relevant cost information is provided below: variable COSE Sales price per unit $20.00 Direct material costs per unit $5.00 Direct labor costs per unit $4.00 in Variable overhead costs per unit $1.40 Variable selling and administrative costs per unit Fixed selling and administrative costs are $30,000 and fixed manufacturing costs total $50,000. $1.60 Required: Compute the following (Show and Label Your Work): TIC 5. The company expects that lowering the sale price by 10% and increasing advertising costs 6 by $16.000 will cause unit sales to increase by 20% (present sales are at 15,000 units). By how much would this affect (change) net income? Show all work! New Sales Price: 20x90=18 New Fixed Costs: F MEG +FSEA+AdV New Units Sold: + old sales +Additional sales (156) ISK +34 18k 115k 200 Present Net Income Iskoro Projected Net Income 18x 18 3oou ishin 324,000 216,000 Isch 120k iskan cma fc sok 108,000 96,000 Net Income S 210.001 Net Income $12.000 6. Refer to the original data. Assume the company is expected to sell 8,000 units next year. Prepare a contribution income statement at this level. 7. What new price should the company charge if they can sell only 8,000 units and they still want to break-even? Unit Costs: Sales VC Less: TVC FC $ Less: FC Net Income 61 Step by Step Solution
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