Gracie Glynn has just become a product manager for Whoyser Products, Inc. and in charge of their new low cost pencil sharpener: the sharpener, will have a retail price of $1.00. Retail margins on the sharpener are 33% and wholesalers take a 12% marginWhoyser and its sharpener competitors sell a total of 20 million unit annuallyWhoyser has a 24% unit market share of the marketWhoyser variable manufacturing costs for its sharpener are $0.09/unit. Fixed manufacturing costs are $900,000The advertising budget for the Whoyser sharpener is $500,000. Manager salary and expenses total $35,000Whoyser salespeople are paid entirely by a 10% variable commission on Whoyser sales revenue. Shipping costs, breakage, etc. amount to $0.02 per unit.1. What is the unit contribution for the Whoyser sharpener? 2. What is the Whoyser sharpener's Break Even point? 3. What unit market share does Whoyser need to break even?4. What is Whoyser's profit impact at its current unit market share?5. Industry demand is projected to increase to 23 million units next year. Gracie is considering raising her advertising expenditures to $1,000,000. If the advertising budget is raised, how many units will Whoyser have to sell to break even?6. How many units will Whoyser have to sell in order for it to achieve the same profit impact as it did this year? What will its market share have to be in order for its profit impact to be the same as this year?

9. tax types: taxes are classified based on whether they are applied directly to income, called direct taxes, or to some other measurable performance characteristic of the firm, called indirect taxes. identify each of the following as a “direct tax,” an “indirect tax,” or something else: a. corporate income tax paid by a japanese subsidiary on its operating income b. royalties paid to saudi arabia for oil extracted and shipped to world markets c. interest received by a u. s. parent on bank deposits held in london d. interest received by a u. s. parent on a loan to a subsidiary in mexico e. principal repayment received by u. s. parent from belgium on a loan to a wholly owned subsidiary in belgium f. excise tax paid on cigarettes manufactured and sold within the united states g. property taxes paid on the corporate headquarters building in seattle h. a direct contribution to the international committee of the red cross for refugee relief i. deferred income tax, shown as a deduction on the u. s. parent’s consolidated income tax j. withholding taxes withheld by germany on dividends paid to a united kingdom parent corporation

Exercise 18-15 sheffield appliance center is an experienced home appliance dealer. sheffield appliance center also offers a number of services for the home appliances that it sells. assume that sheffield appliance center sells ovens on a standalone basis. sheffield appliance center also sells installation services and maintenance services for ovens. however, sheffield appliance center does not offer installation or maintenance services to customers who buy ovens from other vendors. pricing for ovens is as follows. oven only $790 oven with installation service 850 oven with maintenance services 970 oven with installation and maintenance services 990 in each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $180. additionally, the incremental amount charged by sheffield appliance center for installation approximates the amount charged by independent third parties. ovens are sold subject to a general right of return. if a customer purchases an oven with installation and/or maintenance services, in the event sheffield appliance center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790. assume that a customer purchases an oven with both installation and maintenance services for $990. (b) indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract.

University car wash built a deluxe car wash across the street from campus. the new machines cost $219,000 including installation. the company estimates that the equipment will have a residual value of $19,500. university car wash also estimates it will use the machine for six years or about 12,500 total hours. actual use per year was as follows: year hours used 1 3,100 2 1,100 3 1,200 4 2,800 5 2,600 6 1,200 prepare a depreciation schedule for six years using the following methods: 1. straight-line. 2. double-declining-balance. 3. activity-based.