Question
Using an Excel spreadsheet, calculate the bottom line improvement using the base line below under these scenarios: Increase sales by 50% Reduce finance costs
Using an Excel spreadsheet, calculate the bottom line improvement using the base line below under these scenarios: Increase sales by 50% Reduce finance costs by 50%, keeping sales at $100,000 Reduce production costs by 20% (cost of goods sold), keeping sales and finance costs at the initial levels What option offers the best overall result? Upload the Excel file with your calculations and a separate statement of conclusions stating the option that offers the best overall result. Communicate with your instructor if you have difficulties. Base Line Financials Sales Cost of goods sold Gross margin Finance costs Subtotal Taxes at 25% Item Contribution Base Line $100,000 $80,000 $20,000 $6,000 $14,000 $3,500 $ 10,500
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
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