The Hartnett Corporation manufactures baseball bats with Babe Ruth's autograph stamped on them. Each bat sells for $27 and has a variable cost of $15. There are $27,000 in fixed costs involved in the production process. a. Compute the break-even point in units. Break-even point units b. Find the sales (in units) needed to earn a profit of $20,400. Sales quantity needed ________________ units
Q: after tax salvage value of packaging equipment which is 350,000 added to terminal cash flow instead…
A: The companies invest in the equipment to earn profit but these equipment become obsolete after some…
Q: Why do users of derivatives need to be careful relate to silicon valley bank
A: As a financial institution, Silicon Valley Bank (SVB) offers a range of derivative instruments to…
Q: When risk grows while an investor's return remains constant, that investor is said to be a.…
A: Risk is the possibility of suffering harm or loss. It is the chance that an event or action will…
Q: The return and volatility of ________ portfolios are often lower than those of other asset types…
A: A portfolio is a collection of financial assets such as stocks, bonds, and cash that an investor…
Q: Analyze Starbucks financials and give an explanation.
A: Starbucks is one of the most recognizable brands in the world, known for its coffee and café…
Q: How many possible IRRs could you find for the following set of cash flows
A: Number of IRRs in unconventional cash flows are number of times the polarity changes.
Q: decisions refer to how a firm manages its short-term resources on a day-to-day basis. O Investment O…
A: Financial decisions refer to the process of making strategic decisions related to a company's…
Q: Discuss the historical developments in real estate finance, covering the originating paper (often…
A: The concept of capital market efficiency, which refers to the degree to which stock prices reflect…
Q: What is the yield to maturity of a nine year 5000 bond with a 5% coupon rate and semiannual coupons…
A: YTM is expressed as an annual percentage rate (APR) and is calculated using a complex formula that…
Q: Penguin International's stock has an expected return of 12.9%, a beta of 1.25. If the risk-free rate…
A: The Capital Asset Pricing Model (CAPM) can be used to calculate the market risk premium, which is…
Q: The next dividend payment by Skippy, Inc., will be $1.56 per share. The dividends are anticipated to…
A: When you invest in the stock market there are two types of benefits one is dividend payment and…
Q: .The Counting House, Inc., purchased 5-year property class equipment for $60,000. It uses the…
A: Using the diminishing balance method with a rate of 20%, the depreciation rate for the second year…
Q: D. Newcombe & Associates, Inc., is considering the introduction of a new product. Production of the…
A: Break even is a financial concept that refers to the point at which a business or project's total…
Q: Explain the types of factoring.
A: A corporation sells its accounts receivable to a factor, or third party, in exchange for quick cash…
Q: Combining BCG Matrix to analyze Starbucks' financial strategy, and give explanations and suggestions…
A: The BCG Matrix is a useful tool for analyzing a company's product portfolio and identifying its…
Q: Marigold Corp. is planning to replace an old asset with new equipment that will operate more…
A: Net Present Value is also known as NPV. It is a capital budgeting techniques which help in decision…
Q: Q6. Pujols Lumber Yard has a current accounts receivable balance of $394,539. Credit sales for the…
A: First, find the receivable turnover ratio ( RTOR) = Credit Sales / Accounts receivable Given credit…
Q: You run a construction firm. You have just won a contract to build a government office complex.…
A: NPV means PV of net benefits which will arise from the project during the period. It is computed by…
Q: Under the 3 variance method for analyzing overhead, the difference between the actual factory…
A: Under the 3 variance method for analyzing overhead, the difference between the actual factory…
Q: Take a moment to read some of the research and news articles that Akshay has been reading. What…
A: Several statements have been made about role and importance pf ESG. We have to find all the correct…
Q: 1= 2(1+g) or D1 = 2? Why?
A: Companies pay dividend to shareholder out of net income but some of earnings are retained for the…
Q: Padrene Corp. wants to calculate its weighted average cost of capital. The company's CFO has…
A: As per the guidelines, I am required to answer only the first question. Weighted average cost of…
Q: 112. ARB Inc. had these data of variable factory overhead during February 2023. Standard DL hours…
A: Variable Spending Variance : The difference between the actual amount and budgeted amount of that…
Q: 1 Find the interest earned. Assume 3% interest compounded daily. 2 Assume 365 day year (non-leap…
A: Future value is the total amount of money that has been invested with the hope of receiving a…
Q: Baker's Footwear has 8,000 shares of common stock outstanding at a price per share of $64 and a rate…
A:
Q: Which of the following stocks belongs to the Consumer Staples stock sector? • Walmart Inc. • 3M…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Suppose that two friends, Nick and Rosa, are building portfolios. Nick decides to purchase shares in…
A: A portfolio is a collection of financial assets, such as stocks, bonds, and cash, held by an…
Q: Kate earns an annual salary of $86,000 and rents a condo for $1,650 per month. She has a student…
A: A loan is a contract between parties where money is forwarded on the promise of repayment along with…
Q: ABC Corporation has hired you to evaluate a new FOUR year project for the firm. The project will…
A: A capital budgeting project is given. The magnitude and the timing of the cash flows are known. They…
Q: Suppose a ten-year, $1,000 bond with an 8.6% coupon rate and semiannual coupons is trading for…
A: Yield to Maturity: Yield to maturity represents the bond's total rate of return that is earned by…
Q: An investor borrows an amount at an annual effective interest rate of 7% and will repay all interest…
A: It represents the amount that is borrowed for the purpose of expanding business by the firm from the…
Q: True or False: Increasing the number of stocks in a portfolio reduces market risk. True False…
A: In finance we consider two main kinds of risks – systematic risks and unsystematic risks. Systematic…
Q: The current zero-coupon yield curve for risk-free bonds is as follows: 1 4.98% Maturity (years) YTM…
A: Risk free rate is the rate on treasury bills and is considered the safest return offered. It is the…
Q: Suppose Kate is choosing how to allocate her portfolio between two asset classes: risk-free…
A: Risk refers to the variability in the expected return. Higher the risk, higher the return.
Q: Determine the effective annual yield for each investment. Then select the better investment. 9.5%…
A: The effective annual yield can be calculated using the formula: EAY=(1+rn)n-1 Where, r = Annual…
Q: Harold Filbert is 30 years of age and his salary next year will be $20,000. Harold forecasts that…
A: Present value is a financial concept that represents the value of a future sum of money in terms of…
Q: 56. When the actual amount of a raw material used in production is greater than the standard amount…
A: When the Actual Amount of a Raw Material Used in Production is greater than the Standard Amount…
Q: 6.30 For the alternatives shown, determine the sum of the cash flows in the Z-X difference column.…
A: Given information: First cost of System X is -$40,000 and for Z is -$95,000 Annual operating cost of…
Q: A stock has a required rate of return of 10.25%, and it sells for $53.50 per share. The dividend is…
A: In dividend discount model it is assumed that dividend will grow at constant growth rate even though…
Q: How will you relate and apply the derivatives instrument to an insurance policy?
A: Derivatives instruments are financial contracts whose value is derived from underlying assets, such…
Q: achieved by diversification or holding a large nu rsified portfolio that is composed of 500 large st…
A: 1.A Diversified portfolio that consists of many stocks from varieties of companies, from varieties…
Q: The margin requirement is set by the ________. Select one: a. Federal Reserve b. SEC c. FDIC d. SIPC…
A: Margin requirement is an important concept in the world of investing and finance. It refers to the…
Q: Two $10000 bonds redeemable at par at the end of the same period are bought to yield 9% convertible…
A: Bonds are debt instruments issued by companies. Bonds pay periodic coupons or interests.
Q: q1-You win a lottery with a prize of $1.5 million. Unfortunately the prize is paid in 10 annual…
A: Value of money decreases with time due to reduction in purchase power and more money is required in…
Q: Based on the corporate valuation model, SG Telecom's total corporate value is $750 million. Its…
A: A stock is a type of security that represents ownership in a company. When someone buys a stock,…
Q: How has crowdfunding changed the landscape of new-venture financing?
A: Crowdfunding is the practice of funding a new venture using funds raised from a large number of…
Q: Fixed Income Securities 4. Today is t = 0. You have just bought a five-year zero-coupon Treasury…
A: The price for a zero coupon bond (ZCB) is known. The annually compounded yield to maturity on the…
Q: Critically discuss key factors that can influence the yield of a corporate bond.
A: The yield of a corporate bond represents the return that an investor can expect to earn on their…
Q: Dandil owes two debt payments - a payment of $5356 that was due today and a payment of $1732 due in…
A: It is the case of finding the amount to be paid that can clear the debt where the interest rate…
Q: You are provided with the following sample observations relating to historical rate of returns and…
A: Expected rate of return is the Aggerate value of the Expected returns multiplied by their…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
- Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided, If Reuben accepts the offer, what will the effect on profit be?
- Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling 44,000 shelves for $32 each. Cutrate Furniture approached Jansen about buying 1,200 shelves for bookcases it is building and is willing to pay $26 for each shelf. No packaging will be required for the bulk order. Jansen usually packages shelves for Home Depot at a price of $1.50 per shell. The $1.50 per-shelf cost is included in the unit variable cost of $27, with annual fixed costs of $320.000. However, the $130 packaging cost will not apply in this case. The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the profit if Jansen accepts the special order? A. Profits will decrease by $1,200. B. Profits will increase by $31,200. C. Profits will increase by $600. D. Profits will increase by $7,200.Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
- The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez’s autograph stamped on them. Each bat sells for $33 and has a variable cost of $18. There are $30,000 in fixed costs involved in the production process. a. Compute the break-even point in units. b. Find the sales (in units) needed to earn a profit of $17,250.Madlock, Inc. sells a product with a contribution margin of $10 per unit. Fixed costs are $1,800 per month. How many units must Madlock sell to break even? Begin by showing the formula and then entering the amounts to calculate the units Madlock must sell to break even. (Abbreviation used: CM = contribution margin. Complete all input fields. Enter a "0" for items with a zero value.) Target profit ) = Fixed costs ▼ + + HH CM per unit TOD Carmen Required sales in unitsFinch Corporation produces products that it sells for $20 each. Variable costs per unit are $5, and annual fixed costs are $318,000. Finch desires to earn a profit of $51,000. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. a. Break-even point in units a. Break-even point in dollars b. Sales volume in units b. Sales in dollars Prev 1 of 16 Next >