Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) Corporation reported year end information for 2008 which is given below:

Sales (100,000)

$250,000

Less: Cost of Goods sold

150,000

Gross profit

100,000

Operating expenses

 

(includes 10,000 of depreciation)

60,000

Operating income

40,000

Corporation is developing budget for 2009.  In 2009 company would like to raise selling prices by 15% and as result expects reduce in sales volume of 8%.  It is looking to use Kaizen approach to budgeting in 2009.  Under kaizen approach, cost of goods sold and variable operating expenses would be budgeted to decrease by one percent without considering any changes in sales.  Other than depreciation, all operating costs are variable.

A)  Make a budgeted income statement for 2009.

B)  Must it change selling price?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M916882

Have any Question? 


Related Questions in Accounting Basics

Describe the differences between a profit and loss account

Describe the differences between a profit and loss account and a cash flow statement.

Ecampus accounting cycle paperaccounting cycle paper-

eCampus Accounting Cycle Paper Accounting Cycle Paper- Assessment Activity- Write a 700- 1,050-word paper including the following: · The purpose of accounting and financial reporting within your organization or an organi ...

What is represented by the labeled lines connecting

What is represented by the labeled lines connecting entities in an REA diagram? Why are journals and ledgers not modeled in an REA diagram?

Problemshareholders equity transactions and statement of

Problem Shareholders' Equity Transactions and statement of Financial position presentation The shareholder's equity og M. Gangoso corporation at Jan 1, 2016 appers below: *% preference share, P250 par, 15,000 shares auth ...

Fasb codification systemaccess the fasb online website and

FASB Codification System Access the FASB Online website and familiarize yourself with the contents. Write a 350- to 700-word paper in which you answer the following questions: • What is the FASB Codification System? • Wh ...

Problem - cwt lawyers pty ltd started to operate in 2015 in

Problem - CWT Lawyers Pty Ltd started to operate in 2015 in Melbourne. CWT advises clients on legal issues relating to commercial contracts, ASIC compliance, Trade Practices and Corporations Act requirements, business st ...

Treatment of intangible assets and impairmentsdetermine

Treatment of Intangible Assets and Impairments Determine accounting alternatives for intangibles. There are a number of differences between IFRS and U.S. GAAP for the treatment of intangible assets and impairments. The i ...

Question -owing to low liquidity lisa ltd decides on 1 july

Question - Owing to low liquidity, Lisa Ltd decides on 1 July 2015 to sell its land and buildings to Anderson Ltd. The carrying values of the land and buildings in the books of Lisa Ltd, at 1 July 2015, are: Land at Cost ...

Balanced scorecard for a service company american express

Balanced scorecard for a service company American Express Company is a major financial services company, noted for its American Express® card. Some of the performance measures used by the company in its balanced scorecar ...

Taskin april 2016 the fair work ombusman released a report

Task In April 2016, the Fair Work Ombusman released a report on the findings of this inquiry on the 7 Eleven franchise network. The inquiry was prompted by allegations of systemic non-compliance with federal workplace la ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate