Company has recently become aware of the large total discounts on its orders and would like to know the impact on profit. The company computed its operating profit as follows: Requirements X - X Data table Requirements S (a) Suppose Rogers could reduce its sales discounts to produce a 15% increase in nett revenues but no changes in variable or fixed costs. By what percent would operating profits increase? How does this percentage compare to the percentage increase in net sales revenue? Net sales after discounts Variable costs $ Contribution margin Fixed costs Operating profit 5 (b) Refer to the original information in this problem. Suppose Rogers' salespeople increase sales discounts to produce a 5% decrease in net revenues, with no change in variable or fixed costs. By what percent would operating profits decrease? How does this percentage compare to the percentage decrease in net sales revenue? (c) Consider the ratio of operating profit to sales. How does this ratio relate to the percentage change in operating profit, for a given percentage change in the net sales revenue? Print Done base in operating profits is than the percentage Print Done ales discounts to produce a 5% decrease in net revenues, percentage decrease in net 130,000 60,000 70,000 5,000 65,000 aft
Rogers Company has recently become aware of the large total discounts on its orders and would like to know the impact on proft. The company computed its CTED Requirement (a) Suppose Rogers could reduce its sales discounts to produce a 15% increase in net revenues but no changes in variable or fixed costs. By what percent would operating profits increase? How does this percentage compare to the percentage increase in net sales revenue? Begin by calculating the operating profit with a 15% increase in net revenues but no changes in variable or fixed costs. Net sales revenues Variable costs Contribution margin Fixed costs Operating profit By what percent would operating profits increase? How does this percentage compare to the percentage increase in net sales revenue? than the percentage A 15% increase in net revenues would result in a(n) % increase in operating profit. The percentage increase in operating profits is increase in net sales revenues. Requirement (b) Refer to the original information in this problem. Suppose Rogers' salespeople increase sales discounts to produce a 5% decrease in net revenues with no change in variable or fixed costs. By what percent would operating profits decrease? How does this percentage compare to the percentage decrease in net sales revenue? Begin by calculating Rogers' operating profit if its salespeople increase sales discounts to produce a 5% decrease in net revenues, with no change in variable or fixed costs. Net sales revenues Mast see score see scores see score see score see score see score per score see score
Wilpany computed its CID increase in net sales revenues. Requirement (b) Refer to the original information in this problem. Suppose Rogers' salespeople increase sales discounts to produce a 5% decrease in net revenues, with no change in variable or fixed costs. By what percent would operating profits decrease? How does this percentage compare to the percentage decrease in net sales revenue? Begin by calculating Rogers' operating profit if its salespeople increase sales discounts to produce a 5% decrease in net revenues, with no change in variable or fixed costs. Net sales revenues Variable costs Contribution margin Fixed costs Operating profit By what percent would operating profits decrease? How does this percentage compare to the percentage decrease in net sales revenue? Rogers's operating profits would decrease by%. The percentage decrease in operating profits is than the percentage decrease in net sales revenue. Requirement (c) Consider the ratio of operating profit to sales. How does this ratio relate to the percentage change in operating profit, for a given percentage change in the net sales revenue? 11 the change in operating profit percentage for a given percentage change in the net sales revenue. The higher the ratio of operating profit to sales, the see see see see see see see s
points) possible Goomit quiz Rogers points) possible Goomit quiz Rogers Company has recently become aware of the large total discounts on its orders and wou
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