7BP Dodge Ball Bearings had sales of... [FREE SOLUTION]

91影视

Foundations Of Financial Management

Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen

Business Studies

16th Edition 路 768 pages

ISBN: 9781259277160

Chapter 2: 7BP (page 114)

Dodge Ball Bearings had sales of 15,000 units at $45 per unit last year. The marketing manager projects a 30 percent increase in unit volume sales this year with a 20 percent price decrease (due to a price reduction by a competitor). Returned merchandise will represent 8 percent of total sales. What is your net dollar sales projection for this year?

Short Answer

Expert verified

The net dollar sale projection of the company for this year is $645,840.

Step by step solution

Increase in units sold

$\begin{array}{rcl} Increase in units sold & = & Current units sold 脳 (1 + increment) \\ = & 15, 000 脳 (1 + 0.30) \\ = & 19, 500 \end{array}$

Decrease in unit price

$\begin{array}{rcl} Decreased unit price & = & Unit price 脳 (1 - Decrease ratio) \\ = & $ 45 脳 (1 - 0.20) \\ = & $ 36 \end{array}$

Increased sales volume

$\begin{array}{rcl} Sales volume & = & Increased units sold 脳 Decreased unit price \\ = & 19, 500 脳 $ 36 \\ = & $ 702, 000 \end{array}$

Returned merchandise

$\begin{array}{rcl} Returned merchandise & = & Total sales volume 脳 Return percentage \\ = & $ 702, 000 脳 8 % \\ = & $ 56, 160 \end{array}$

Net dollars sales projections of the company for this year

$\begin{array}{rcl} Net dollar sales projection & = & Total sales volume - Returned merchandise \\ = & $ 702, 000 - $ 56, 160 \\ = & $ 645, 840 \end{array}$

Unlock Step-by-Step Solutions & Ace Your Exams!

Full Textbook Solutions
Get detailed explanations and key concepts
Unlimited Al creation
Al flashcards, explanations, exams and more...
Ads-free access
To over 500 millions flashcards
Money-back guarantee
We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Recommended explanations on Business Studies Textbooks

View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

September (actual)	\(70,000
Fourth Quarter
October	\)60,000
November	55,000
December	80,000

STERLINE TIRE COMPANY Income Statement For the year ended December 31, 20X1
Sales (20,000 tires at \(60 each)	\)1,200,000
Less: variable costs (20,000 tires at \(30)	600,000
Less: fixed cost	400,000
Earnings before interest and taxes (EBIT)	\)200,000
Interest expenses	50,000
Earning before taxes (EBT)	\(150,000
Income tax expenses (30%)	45,000
Earning after taxe (EAT)	\)105,000

91影视

Short Answer

Step by step solution

Increase in units sold

Decrease in unit price

Increased sales volume

Returned merchandise

Net dollars sales projections of the company for this year

One App. One Place for Learning.

Most popular questions from this chapter

Recommended explanations on Business Studies Textbooks

Influences On Business

International Business

Strategic Direction

Insurance

Business Operations

Strategic Analysis

Study anywhere. Anytime. Across all devices.