You see an estimate that hourly wage rates will increase by 6 percent next year. What other information do you need to determine the effect of this wage rate increase on the operating profit margin, and why do you need it?
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- If you are the CEO and you give your employees a bonus at the end the year, according to their net income during the year. When prices are rising would you choose FIFO or Weighted average cost flow assumption. 1. EXAMPLE 2. EXAMPLE WITH NET INCOME 3. SHOW HOW THE CALCULATION IS DONEIf you are the CEO and you give your employees a bonus at the end the year, according to their net income during the year. When prices are rising would you choose FIFO or Weighted average cost flow assumption.Assume that you are the president of your company and paid a year-end bonus according to the amount of net income earned during the year. When prices are rising, would you choose a FIFO or weighted average cost flow assumption? Explain, using an example to support your answer. Would your choice be the same if prices were falling? I need an example with net income for weighted average
- What type of question is finding the detail to more clearly understand why net income is decreasing when revenues are increasing? Multiple Choice What happened? What is happening? Why did it happen? What are the root causes of past results? Will it happen in the future? What is the probability something will happen? Is it forecastable? What should we do based on what we expect will happen? What should we do based on what we expect will happen? How do we optimize our performance based on potential constraints?Requirement 1. If SnowDreams cannot reduce its costs, what profit will it earn? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? Complete the following table to calculate SnowDreams' projected income. Revenue at market price Less: Total costs Operating incomeHello How can i calculate the annual rate of return? Is there a formula that i can use? or can i solve this in excel?
- Now suppose that annual unit sales, variable cost, and unit price are equal to their respective expected values—that is, there is no uncertainty. Determine the company's annual profit for this scenario. Round answer to a whole number, if needed.$1. What is the present yearly net operating income or loss? 2. What is the present break-even point in unit sales and in dollar sales? 3. Assuming that the marketing studies are correct, what is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit?Suppose you are analyzing a firm that is successfully executing a strategy that differentiates its products from those of its competitors. Because of this strategy, you project that next year the firm will generate 6.0% revenue growth from price increases and 3.0% revenue growth from sales volume increases. Assume that the firms production cost structure involves strictly variable costs. (That is, the cost to produce each unit of product remains the same.) Should you project that the firms gross profit will increase next year? If you project that the gross profit will increase, is the increase a result of volume growth, price growth, or both? Should you project that the firms gross profit margin (gross profit divided by sales) will increase next year? If you project that the gross profit margin will increase, is the increase a result of volume growth, price growth, or both?
- 1. What is the profit per day of Machine A? 2. What is the profit per day of Machine B? 3. What would the percent of parts rejected have to be for Machine B to be as profitable as Machine A?Cost-volume-profit (CVP) analysis is used to seek answers to questions such as: “What will happen to the profit if the firm increases its selling price by 15%?” Discuss the following under CVP analysis (present graphical representations where applicable):i. The break-even graph ii. The contribution graph iii. The profit graphREQUIRED Calculate the Payback Period of Machine A (expressed in years, months and days). Calculate the Net Present Value of both Calculate the Accounting Rate of Return on initial investment (expressed to two decimal places) of both machines. Calculate the Internal Rate of Return of Machine B (expressed to two decimal places). If the time value of money is taken into account, which machine should be chosen? Why? INFORMATION The directors of Lomax Ltd intend expanding the company and they have the choice of purchasing one of two machines at the end of 2022 viz. Machine A or Machine B. Both machines have a five-year life, with only Machine A having a residual value of R300 000. The annual volume of production of each machine is estimated at 6 000 pallets (comprising 500 bricks each), which can be sold at R520 per pallet. Depreciation is calculated on the machines using the…
