Chapter7Solution - Excel Templates Chapter 7 Student Name:...

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Excel Templates Chapter 7 Student Name: <Type your name here> Class: <Type your class here>
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Problem 7-18 Given Data STRATFORD COMPANY Unit price $15 Variable cost per unit 6 Annual fixed costs 180,000 For Part 3: Estimated sales increase $45,000 For Part 4: Operating results last year: Sales $360,000 Less variable expenses 144,000 Contribution margin 216,000 Less fixed expenses 180,000 Operating income $36,000 Expected percentage sales increase next year 15% For Part 5: Units sold last year 28,000 Percentage reduction in sales price 10% Increase in advertising expense $70,000 Expected percentage increase in sales 50% For Part 6: Units sold last year 28,000 Increase in sales commission per unit $2.00 % increase in sales 100%
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<Type your name here> <Type your class here> Excel Templates Chapter 7 Problem 7-18 Part 1 Contribution margin ratio: Per Unit Percent Selling price $15.00 100% Variable expenses 6.00 40% Contribution margin $9.00 60% Part 2 Break-even point in sales dollars: Fixed costs
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This note was uploaded on 10/19/2010 for the course ACCOUNTING 341 taught by Professor Ken during the Spring '10 term at University of Guelph - Humber.

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Chapter7Solution - Excel Templates Chapter 7 Student Name:...

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