Expert Answers

1. Ringemup, Inc., had net income of $471,700 for its fiscal year ended October 31, 2010. During the year the company had outstanding 37,900 shares of $3.60, $55 par value preferred stock, and 107,000 shares of common stock.Calculate the basic earnings per share of common stock for fiscal 2010. (Round your answer to 2 decimal places.

2. PCM, Inc., had sales of $38.0 million for fiscal 2010. The company’s gross profit ratio for that year was 21.0%.Assume that a new product is developed and that it will cost $457 to manufacture. Calculate the selling price that must be set for this new product if its gross profit ratio is to be the same as the average achieved for all products for fiscal 2010. (Round your answer to 2 decimal places. .