Problem 17-2 (LO 17-1) A service company has the...A service company has the following financial information (in millions of $)Sales$510210Cost of outsourced facilitating goodsCost of in-house services providedAdministrative costs19977Pretax earnings24(Round answers to 1 decimal place.)a. What is the profit leverage effect of reducing the cost of the facilitating goods in this company?b. It has been suggested that the in-house services costs could be reduced by 10 percent in the coming year byimplementing lean systems. What effect would this have on earnings increase in percentage?c. What is the profit leverage effect of in-house services relative to profits?

Profit leverage refers to the ability of a company to increase its profits at a faster rate than its…

Answered: A service company has the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Remember: Gross profit = SP- CP Activity 1.2 enti Complete the following table: Table 1.2: Finding the cost price, the gross profit or the selling price No Cast price Gross prafit Selling price 1.2.1 R5 600 R8 700 1.2.2 R3 400 30% 1.2.3 R6 800 R12 700 1.2.4 R17 500 R35 000 The owner of an enterprise has to calculate both the gross and the net profit. A business has certain operating expenses thai must be deducied from the gross profit to get the net profit. Examples of operating expenses are: • Salaries Wages • Rent paid/rent expense • Advertisements • Stationery. The cost of advertising the business is one example of an operating expense. Gross profit minaş operating expenses equals net profit."
Question 3: Şahar Company's financial information is given in the table below. Year Sales (OMR) | Fixed Costs Variable Costs 2019 405000 90000 225000 2020 450000 120000 240000 Calculate: a) P/V ratio, b) B.E.P. c) Sales required to earn a profit of OMR 40000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 200000.
EA5. LO 9.4 Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only to department B (they have no outside sales). After calculating the operating income in dollars and operating income in percentage, analyze the following financial information to determine costs that may need further investigation. (Hint: It may be helpful to perform a vertical analysis.)
Fill in the blank/s: A company’s __________ function is the money generated by selling x units of its product. The difference between this function and the company’s cost function is called its ___________ function.
Q7 b.Calculate the effect on profit of a proposed change in 'Sales Mix' from the following data and also suggest that whether company should change the sales mix or continue with the existing: M N Total Sales (in Rs) Existing Sales mix(Rs.) 80,000 1,00,000 40,000 20,000 2,40,000 Variable Cost (in Rs) 48,000 68,000 32,000 8,000 1,56,000 Fixed Cost (in Rs) 58,800 Proposed Sales Mix(Rs.)60,000 88,000 80,000 12,000 2,40,000
A service company has the following financial information (in millions of $) Sales $ 510 Cost of outsourced facilitating goods 210 Cost of in-house services provided 199 Administrative costs 77 Pretax earnings 24 (Do not round intermediate calculations. Round answers to 1 decimal place.)a. What is the profit leverage effect of reducing the cost of the facilitating goods in this company? The correct answer is 21.3 b. It has been suggested that the in-house services costs could be reduced by 10 percent in the coming year by implementing lean systems. What effect would this have on earnings increase in percentage? The correct answer is 82.9% c. What is the profit leverage effect of in-house services relative to profits? I NEED ANSWER TO THIS QUESTIONS PLEASE THANK YOU
Question 3: CRS Company’s financial information is given in the table below. Year Sales (OMR) Fixed Costs Variable Costs 2019 405000 90000 225000 2020 450000 120000 240000 Calculate: P/V ratio, E.P. Sales required to earn a profit of OMR 40000. Margin of safety at a profit of OMR 50000 Profit when sales are OMR. 200000.
Question 3: Sohar Company's financial information is given in the table below. Year Sales (OMR) Fixed Costs Variable Costs 2019 405000 90000 225000 2020 450000 120000 240000 Calculate: a) P/V ratio, b) В.Е.Р. c) Sales required to earn a profit of OMR 40000. d) Margin of safety at a profit of OMR 50000 Profit when sales are OMR. 200000. e)
3. A company has different output levels, and incurs different total production costs at each level, as follows. Total Costs Output (units) 6,000 8,000 44,700 57,700 c) If the selling price is SXX/unit at all levels, what is the B.E.P.? d) What is the breakeven revenue?
The total cost formula for a company can be modeled by TC = 12570+ 50x where x represents the number of items sold. A formula for the company's total income is modeled with TR 80x, where a represents the number of items sold. This company will breakeven when its total costs equal its total income. - How many items must this company sell to breakeven? Answer:
It is due today. Please help! Can you help me find/solve the following? 1. PRIME COST (F+B+LABOR) 2. TOTAL COSTS OF SALES 3. TOTAL GROSS PROFIT 4. TOTAL INCOME 5. TOTAL INCOME LESS CONTROLLABLE 6. TOTAL OCCUPANCY COSTS 7. INCOME BEFORE INT, DEPR & TAX 8. TOTAL INTEREST EXPENSES 9. TOTAL DEPRECIATION EXPENSES 10. NET PROFIT or (LOSS)
Management has at its disposal the following information: Revenue function: R =890Q ‒5.5Q2 The profit-maximizing price: P=494 OMR. Then the Profit-maximizing quantity is (............) Units. (write only the number) Answer:

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