Ask Question
BusinessBusiness
28 October, 02:27

company has reported gross margin in prior periods of 15.5%. 15.4%, 15.7% and 15.6% it recently launched a successful more profitable new products that is 20%of sales. what is the most likely gross margin for the coming quarter?

+5
Answers (1)
  1. 28 October, 02:34
    0
    16.33%

    Explanation:

    For the coming quarter the Gross margin is also likely to increase by 20% because Sales will actually increase by 20% based on the given data and also on the assumption that the new product will be equally profitable. In this way the Gross margin must increase by 20% as well. However the quarterly rise in Gross margin would be 5% (20% divided by 4).

    Gross Margin 1 15.40%

    Gross Margin 2 15.50%

    Gross Margin 3 15.60%

    Gross Margin 4 15.70%

    Average Gross Margin 15.55%

    20% increase in Gross Margin 18.66%

    5% increase in Gross Margin 16.33%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “company has reported gross margin in prior periods of 15.5%. 15.4%, 15.7% and 15.6% it recently launched a successful more profitable new ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Super Tread Inc. is a large manufacturer of auto tires. Super Tread has provided the following information: Sales Revenue $55,000 Beginning Finished Goods Inventory 15,500 Cost of Goods Sold 37,500 Cost of Goods Manufactured 44,500 Calculate the
Answers (1)
If oligopolistic firms facing similar cost and demand conditions successfully collude, price and output results in this industry will be most accurately predicted by which of the following models? A. the kinked demand curve model of oligopoly B.
Answers (1)
What does apartheid mean and what country in africa practiced it?
Answers (1)
In addition to general medical services, holly would like to add dental and vision options to her health care plan. the monthly premium for her medical insurance is $345 of which her employer pays 65%.
Answers (1)
Ashton is working on a project at PowerTek Inc., a well-known multinational corporation. He uses capital budgeting to estimate the project's future cash flows.
Answers (1)
New Questions in Business
A company has two departments and allocates all overhead costs based on department revenues. The following information applies: Department 1 revenue $1,000,000 Department 2 revenue 1,500,000 Corporate overhead costs 250,000 Department overhead costs
Answers (1)
The most useful allocation basis for the departmental costs of an advertising campaign for a storewide sale is likely to be: Multiple Choice An equal amount of cost for each department. Number of customers to enter each department.
Answers (1)
What happens when a bond becomes due? A The issuer will pay you back, minus interest. B The issuer will pay you back, plus interest. C You pay it back to the issuer, plus interest. D You pay it back to the issuer, minus interest.
Answers (2)
The emphasis of a marketing strategy for a continuous innovation concentrates on
Answers (1)
Daphne handles the payroll and performance appraisals of employees. Which business department does Daphne belong to?
Answers (2)
Home » Business » company has reported gross margin in prior periods of 15.5%. 15.4%, 15.7% and 15.6% it recently launched a successful more profitable new products that is 20%of sales. what is the most likely gross margin for the coming quarter?
Sign Up Forgot Password?