Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Regal Flair Enterprises has 2 product lines: jewellery and women's apparel. Cost and revenue data for each product line for the current month are as follows:
Product lines
Jewlery Apparel
Sales........................................................................ $800,000 $450,000
Variable costs as a % of sales 55% 28%
Fixed costs traceable to product line $200,000 $250,000
In addition to the costs shown above, the company incurs monthly fixed costs of $100,000 common to both product lines.

INSTRUCTIONS:
A-prepare Regal Flair Enterprises responsibility income statement for the current month. Report the responsibility margin for each product line and income from operations for the company as a whole. Also include columns showing all dollar amounts as percentages of sales.

B-assumr that a marketing survey shows that $75,000 monthly advertising campaign focused on either product line should increase that product lines monthly advertising campaign focused on either product line should increase that product lines monthly sales by approx $150,000. Do you recommend this additional advertising for either or both product lines? Show computation to support your conclusions.

C-management is considering expanding one of the companys 2 product lines. An investment of a given dollar amount is expected to increase the sales of the expanded product line by $300,000. It is also expectd to increase the traceable fixed costs of the expanded product line by 75%. On the basis of this information which product line do you recommend expanding? describe the basis for your conclusion

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M926039

Have any Question? 


Related Questions in Basic Finance

Discussion questionliabilities please respond to the

Discussion Question "Liabilities" Please respond to the following: • Let's use this discussion to study bonds together. Assume the following information for a bond issue: ABC Company issues the bonds at a face value of $ ...

The pressure rise across a pump p this term is proportional

The pressure rise across a pump P (this term is proportional to the head developed by the pump) may be considered to be affected by the fluid density ρ, the angular velocity ω, the impeller diameter D, the volumetric rat ...

1 how do the various labor standards promulgated by

1. How do the various labor standards promulgated by international organizations affect the MNE? 2. How do EU directives (such as those developed in the area of HR) impact member states and MNEs? 3. How do US extraterrit ...

Module discussiontwo separate discussions at least 150

Module Discussion TWO SEPARATE DISCUSSIONS. AT LEAST 150 WORDS EACH. Cost of Capital Actions for 'Cost of Capital' In light of the Enron, Worldcom, option back dating, government bailouts/nationalizations and Madoff scan ...

1 distinguish between concurrent and predictive validity do

1. Distinguish between concurrent and predictive validity. Do these terms refer to types of construct validity or criterion-related validity? 2. How can we tell whether a particular measure is biased against a particular ...

1 what makes managing employee health and safety programs

1. What makes managing employee health and safety programs around the world so difficult? 2. Why have family-friendly and work-life balance programs become so important? 3. Describe the kinds of health, safety, and secur ...

On august 20 a stock index futures which expires on

On August 20 a stock index futures, which expires on September 20, was priced at 429.70. The index was at 428.51. The dividend yield was 2.7 percent. Discuss the concept of the implied repo rate on an index arbitrage tra ...

1 may personal financial statements be prepared only for an

1. May personal financial statements be prepared only for an individual? Comment. 2. What is the basic personal financial statement? 3. Is a statement of changes in net worth required when presenting personal financial s ...

Straight supply is a major supplier of medical components

Straight Supply is a major supplier of medical components to large pharmaceutical corporations. Bonnie Straight is a second generation CEO of the company founded by her father forty years ago. Originally established in M ...

How do analysts use ratios to analyze a firms financial

How do analysts use ratios to analyze a firm's financial leverage? Which ratios convey more important information to a credit analyst-those revolving around the levels of indebtedness or those measuring the ability to me ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro