Excel Applications for Accounting Principles
4th Edition
ISBN: 9781111581565
Author: Gaylord N. Smith
Publisher: Cengage Learning
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Chapter 21, Problem 6R
Reset cells to their initial values. Sweet Pleasures, Inc., is considering undertaking a $1,200 per month advertising campaign to promote Sweet Pleasures chocolate as exclusive and extraordinarily tasty. What price (dollars and cents) would Sweet Pleasures have to charge for each box to be able to pay for the campaign, pay back the $10,000 note, and have $15,000 left over at the end of April? (Try different prices in cell C9.)
Sales price $___
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Solve each of the following questions using both pricing formulas and Excel.
5. You are managing a small company and need to buy some equipment for your product line. Kangaroo Manufacturing is offering free credit on a $20,000 piece of equipment. You pay down $2,000 and then $600 a month for the next 30 months. Turtle Machines does not offer free credit but will give you $2,000 off the list price. If the rate of interest is 10% (APR) a year, which company is offering a better deal?
Use the information for the question(s) below.Food For Less (FFL), a grocery store, is considering offering one hour photo developing in their store. The firm expects that sales from the new one hour machine will be $150,000 per year. FFL currently offers overnight film processing with annual sales of $100,000. While many of the one hour photo sales will be to new customers, FFL estimates that 60% of their current overnight photo customers will switch and use the one hour service. The level of incremental sales associated with introducing the new one hour photo service is closest to:
A. $60,000
B. $90,000
C. $150,000
D. $120,000
Use the information for the question(s) below.Food For Less (FFL), a grocery store, is considering offering one hour photo developing in their store. The firm expects that sales from the new one hour machine will be $150,000 per year. FFL currently offers overnight film processing with annual sales of $100,000. While many of the one hour photo sales will be to new customers, FFL estimates that 60% of their current overnight photo customers will switch and use the one hour service. Suppose that of the 60% of FFL's current overnight photo customers, half would start taking their film to a competitor that offers one hour photo processing if FFL fails to offer the one hour service. The level of incremental sales in this case is closest to:
A. $150,000
B. $120,000
C. $60,000
D. $90,000
Chapter 21 Solutions
Excel Applications for Accounting Principles
Ch. 21 - On January 1, Sweet Pleasures, Inc., begins...Ch. 21 - Open the file CASHBUD from the website for this...Ch. 21 - Can the 10,000 note be repaid on May 1? Explain.Ch. 21 - Prob. 4RCh. 21 - The following four suggestions have been made to...Ch. 21 - Reset cells to their initial values. Sweet...Ch. 21 - Prob. 7R
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