ARBUS102 Lecture Notes - Lecture 12: Earnings Before Interest And Taxes, Contribution Margin, Fixed Cost
18 Apr 2016
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Parent corp. has subsidiaries in both canada and the us. Calculate margin turnover, roi & residual income given that parent requires 14% return (roi) in. Company"s operaing income over the last 2 years. 1st variable & ixed components of selling & admin. Fixed component: 100,000 5000 x 10 = ,000. Cost of goods sold is not always variable merchandiser = variable menu = mixed. 1st q: increase adverising /month, sales ,000. Opion 1: re-do f/s & see if its beter. Opion 2: increased sales = 70,0000 x cm raio 30% = increased cm by ,000. Cost of doing it 8000 (ahead by 13,000) Opion 3: sales increased by 70,000 or 3500 units. Will double sales if reduce price by 10% & increase adverising by. New sales volume = 13,500 x 2 = 27,000. New sales price = 10% (20) = . New fixed cost = 90,000 + 35,000 = ,000. Set overhead income of automaic = income to.
