FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- New information suggests that Holliday Ltd’s monthly fixed costs will rise to £230,000. Marginal cost per unit will remain at £76 and expected demand is still 5,000 units. If at least £60,000 of profit is required by shareholders per month, what is the minimum selling price the company will have to charge per unit? a. £134 b. £143 c. £116 d. £58arrow_forwardA company requires $1400000 is sales to meet its net income target. Its contribution margin is 50% and fixed costs are $300000. What is the company's target net income?arrow_forwardE3 Doni is a self-manufactured, he wants to calculate how much the price for their new product if the targeted initial margin is 65%; given all-in production cost is $15, transport & logistic cost is 5.8% from the production cost, and revenue sharing cost would be 12% from landing cost (production + transport + logistic).arrow_forward
- If the objective of the firm is to get 25% profit, how many units does the firm need to sell if the price per unit is $250? Given information: Annual fixed costs are 114,000, CTO is .65, breakeven point is 175,384.62.arrow_forward= Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years and your cash flows from the contract would be $4.93 million per year Your upfront setup costs to be ready to produce the part would be $7.97 million Your discount rate for this contract is 7.7% a. What is the IRR? b. The NPV is $4.80 million, which is positive, so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule? a. What is the IRR? The IRR is (Round to two decimal places)arrow_forward?arrow_forward
- Sinclair Company's product has a selling price of £25 per unit. Last year the company reported a profit of £20,000 and variable expenses totalling £180,000. The product has a 40% contribution margin ratio. Because of competition, Sinclair Company will be forced in the current year to reduce its selling price by £2.00 per unit. How many units must be sold in the current year to earn the same profit as was earned last year? Select one: O A. 15,000 units O B. 12,000 units O C. 16,500 units O D. 12,960 unitsarrow_forward?arrow_forward
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