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Author Question: Skipmar Company produces a molded briefcase that is distributed to luggage stores. The following ... (Read 15 times)

xsk4r3kr0w

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on: Feb 5, 2023
Skipmar Company produces a molded briefcase that is distributed to luggage stores. The following operating data for the current year has been accumulated for planning purposes.

Sales price$ 40.00
Variable cost of goods sold12.00
Variable selling expenses10.60
Variable administrative expenses3.00
Annual fixed expenses:​
  Overhead$7,800,000
  Selling expenses1,650,000
  Administrative expenses3,150,000

Skipmar can produce 1.5 million cases a year. The projected net income for the coming year is expected to be $1.8 million. Skipmar is subject to a 40% income tax rate.

During the planning sessions, Skipmar's managers have been reviewing costs and expenses. They estimate that the company's variable cost of goods sold will increase 15% in the coming year and that fixed administrative expenses will increase by $150,000. All other costs and expenses are expected to remain the same.

Required:

a.What amount of sales revenue will Skipmar need to achieve in the coming year
to earn the projected net income of $1.8 million?
b.What price would Skipmar need to charge for the briefcase in the coming year
to maintain the current year's contribution margin ratio?
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by xsk4r3kr0w on Feb 5, 2023

ladan86

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Reply #1 on: Feb 5, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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xsk4r3kr0w

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Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review

LegendaryAnswers

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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