For April, Zoe’s total selling, general, and administrative costs were $3,500,000. Total sales for the month were $10,000,000. Discuss whether the Crimson Tide sales price was sufficient, or not. What...
For April, Zoe’s total selling, general, and administrative
costs were $3,500,000. Total sales for the
month were $10,000,000. Discuss whether the Crimson Tide sales
price was sufficient, or not. What
factors could impact your response to this question?
This is all the information I got, not really sure how to answer it...
Homework Answers
Monthly sales for Zoe is 10000000 which is more than the total selling general and administrative costs and is sufficient to cover all the selling and general,selling and administrative expenses. But Apart from selling general and administrative there are many other direct cost, like material cost, labor cost and variable manufacturing cost which forms the base of cost of production or cost of goods sold which is missing in the question. Apart from cost of goods sold, there are various operating cost like depreciation, fixed overheads etc. Many fixed financial charges are there like interest expense etc. So with out considering the cost of goods sold, operating cost and other financial charges we can not say that 10000000 is sufficient or not.
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For April, Zoe’s total selling, general, and administrative costs were $3,500,000. Total sales for the month were $10,000,000. Discuss whether the Crimson Tide sales price was sufficient, or not. What...
3. Variable Costing Income Statement On April 30, the end of the first month of operations,...
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Goshford Company produces a single product and has capacity to produce 185,000 units per month. Costs to produce its current sales of 148,000 units follow. The regular selling price of the product is $148 per unit. Management is approached by a new customer who wants to purchase 37,000 units of the product for $80.10 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is...
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