Wally's widgets is starting operations as of january 1. the company sells a single product and expects first month's sales to be 10,000 units with sales increasing by 250 units per month thereafter. the sales price for the product is $12.00.the company has a 50% gross margin on its products and pays a 10% commission on sales-what is the budget assumption for first month's sales in units, sales growth per month, sales price per unit, gross margin, commission. part b. wally's widgets expects the ending inventory balance at the end of any month to be 60% of the expected sales for the following month. the company wishes to maintain a minimum cash balance of $20,000 at all times. the company has access to a line of credit that incurs an interest rate of 12% per year.-what is the budget assumption for ending inventory, minimum cash balance, and interest rate.

Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. in this case, the country that produces jeans will produce 32 million pairs per month, and the country that produces corn will produce 32 million bushels per month.

Parks corporation is considering an investment proposal in which a working capital investment of $10,000 would be required. the investment would provide cash inflows of $2,000 per year for six years. the working capital would be released for use elsewhere when the project is completed. if the company's discount rate is 10%, the investment's net present value is closest to (ignore income taxes) ?

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)