Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. mbi inc. had sales of $43 million for fiscal 2019.

MBI Inc. had sales of $43 million for fiscal 2019. The company's gross profit ratio...

50.1K

Verified Solution

Question

Accounting

image
MBI Inc. had sales of $43 million for fiscal 2019. The company's gross profit ratio for that year was 23% Required: a. Calculate the gross profit and cost of goods sold for MBI for fiscal 2019. (Enter your answers in millions rounded to 2 decimal places. (1.e., 5,500,000 should be entered as 5.50)) Gross profit Cost of goods sold milion million Book Print erences b. Assume that a new product is developed and that it will cost $497 to manufacture. Calculate the selling price that must be set for this new product if its gross profit ratio is to be the same as the average achieved for all products for fiscal 2019. (Do not round Intermediate calculations. Enter your answer in dollars rounded to 2 decimal places.) Selling price c. From a management viewpoint, it could use the estimated selling price as a 'target'in conducting marketing research studies to assess its ultimate prospects for success at this price

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students