Cardiff Electronics Company had the following statement of comprehensive income for the most recent year. Sales (17,000 units). Less: Variable expenses. Contribution. Less: Fixed expenses. Profit. Given this data, the contribution per unit was: £357,000 225,000 102,000 68,000 £ 34,000

Cardiff Electronics Company had the following statement of comprehensive income for the most recent year. Sales (17,000 units). Less: Variable expenses. Contribution. Less: Fixed expenses. Profit. Given this data, the contribution per unit was: £357,000 225,000 102,000 68,000 £ 34,000

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

Q: ABCD Company is an investor in oil companies and they should deposit now in order to receive P50,000…

A: Given The amount deposited every year is P50,000 Number of years is 3

Q: THE NEXT THREE (3) QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: Lindsay is considering buying a…

A: Solution:- When a number of cash flows are receivable in future, the amount of such cash flows in…

Q: You plan to buy a house in October 2022. The sale price is $539,000. You need to pay 10% down…

A: Sale Price = $539,000 Down Payment = 10% of Sale Price Time Period = 15 Years Interest Rate = 3.75%

Q: The following information is currently available for Canadian dollar (CS) options: Put option…

A: Strangle option strategy involves both call and put options at different strike prices but on the…

Q: Year 2016 2017 2018 2019 2020 % Stock A's Returns, ra (20.60%) 39.75 17.25 (3.50) 25.00 a. Calculate…

A: Year Stock A Stock B 2016 -20.6 -14.3 2017 39.75 29.8 2018 17.25 37.3 2019 -3.5 -6.6 2020…

Q: true of false with explanation Under the Australian imputation system any taxes paid by Australian…

A: An Australian company would pay company tax on its profits and the company would keep track of the…

Q: has an interest rate of 2.88% (APR) and is amortized over 30 years, using fixed monthly payments.…

A: Loans are paid by equal periodic monthly payments and these monthly payment carry the payment for…

Q: Given 1-year par rate = 3.2% 2-year par rate = 5.2% 3-year par rate = 6.1% 4-year par rate = 7.5%…

A: Data given Par value= K 1000 Year Par Rate 1 3.20% 2 5.20% 3 6.10% 4 7.50%

Q: Which of the following statements about the Macaulay duration of a coupon bond is true? Select one…

A: Macaulay duration of coupon bond is the time required to receive all cash flow from the bond based…

Q: What would the future value of $125 be after 8 years at 8.5% compound interest? a. $205.83 b.…

A: To caculate the future value we will use the below formula Future value = P*(1+r)n Where P -…

Q: You have $18,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of…

A: Expected Portfolio or the overall rate of return of Portfolio is the total return which is generated…

Q: Johnny Rockefeller had a bad credit rating and went to a local cash center. He took out a $100.00…

A: The loan amount is $100 The maturity Value is $111.50 The time period is 2 weeks To Find:…

Q: We project unit sales for a new household-use laser-guided cockroach search and destroy system as…

Q: An Oil firm listed on the GSE has presented the following cashflows for the next five years. Year…

A: Concept. Equity value of the company can be defined as value of company which is attributable to…

Q: Calculate the weighted mean from the following sales: $400, $700, $300, $600, $300, $400, $700…

A: Weighted mean:-The weighted mean is a sort of mean that is computed by dividing the weight (or…

Q: Railway Cabooses just paid its annual dividend of $3.30 per share. The company has been reducing…

A: Just paid dividend (D0) = $3.30 Growth rate (g) = - 0.121 Required return (r) = 0.14 Stock price = ?…

Q: A company issued 20-year bonds with par value $1,000 two years ago at a coupon rate of 5 percent.…

A: Bond Bond The debt instrument used by corporates to obtain funds is known as a bond. The bond will…

Q: Synovec Company is growing quickly. Dividends are expected to grow at a rate of 20 percent for the…

A: We need to quantify the current share price of the stock. We will use the Dividend discount model…

Q: low-risk stocks will be at most $1000 more than the amount invested in medium-risk stocks. At least…

A: Portfolio consists of number of stocks in portfolio and total return on portfolio depends on the…

Q: What exactly does it imply when someone says they have the "FMS option?"

A: Options are a type of derivative financial transaction in which two parties agree to trade an asset…

Q: Mr. Muthu owes a payment of RM 10,000 that due in six years. However, he got another debt of RM…

A: Two debts needs to be balanced with one repayment. The quantum and timing of all the cash flows are…

Q: Max's Brakes is introducing a new revolutionary brake-pad for vehicles that will never wear out.…

A: Cash fixed expense per year is $1500 Depreciation expense is $600 The selling price is $100 The…

Q: m has an opportunity to buy a $1,000 par value bond with a coupon rate of 7% and a maturity of 5…

A: Price of bond is sum of the present value of coupon payment and present value of par value of bond…

Q: 4. Shane obliged to pay her liability to St. Sebastian Multipurpose Cooperative amounting to…

A: Given: Loan amount (PV) = 875,000 Interest rate = 6.2% Years = 3 Compounded quarterly.

Q: What is the difference between CAPM beta and cash-flow beta (from certainty equivalency approach)?…

A: The certainty equivalent is the amount of guaranteed money that an investor will accept now rather…

Q: Define the term constructive receipt. Explain its importance. Explain three restrictions on the…

A: Constructive receipt- Under this concept, it is assumed that a taxpayer has received income, even if…

Q: AR company is considering a new three-year project to build on the land they bought at 1 million…

A: Given The cost of land is $1.5 million Tax rate is 35% WACC is 12%

Q: Calculate the simple interest and maturity value.

A: Simple Interest = Principal x Interest Rate x Time in Years Maturity Value = Principal Value +…

Q: . Looking at the stock information on figure 2, what would you conclude about the South African…

A: Stock markets are highly volatile and changing and but the over the long period of time stock market…

Q: Today, Jim entered into an agreement to sell his cottage to Sara for $150,000. Unknown to both Jim…

A: Summary of the case: 1. Jim entered into an agreement to sell his cottage to Sara 2. Consideration…

Q: You have a credit card with an APR of 20%. The minimum payment is 12% of the balance. Suppose you…

A: Credit cards are common now days and but there are many cost related to the credit card ,so there is…

Q: Complete using the declining balance method of deprecation. Round to the (rearest hundreth…

A: Solution: Depreciation is the amortized cost of asset value per annum. There are various methods of…

Q: Explain how the NPV investment appraisal method can be applied in situations where capital is…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: 3. A conparny сотрату вах project which initial equires outlay of £600.000 and working capital of…

A: concept. (1+ nominal rate ) = ( 1+ real rate ) * ( 1+ inflation rate) in order to arrive at nominal…

Q: Consider the following information about the various states of economy and the returns of various…

A: State of the economy Probability T-Bills Philips Pay-up Rubber-Made Market Index Recession 0.2 7%…

Q: John Mesa, CFA, is a portfolio manager in the Trust Department of BigBanc. Mesa has been asked to…

A: Summary of expenses and income: Expenses: 1. Annual after-tax living costs are expected to be…

Q: “Coady used a strategy of focusing on reducing the number of projects in the portfolio.” Briefly…

A: Bankruptcy is a position wherein businesses or individuals find themselves unable to meet their…

Q: Fill the parts in the above table that are shaded in yellow. You will notice that there are nine…

A: State of the Economy Probability T-Bills Philips Pay-up Rubber made Market Index Recession 0.2 7%…

Q: If a car is depreciated in four years, the rate of depreciation using twice the straight-line rate…

A: Solution:- Depreciation rate means the wear and tear cost of the asset. It is the cost of use of the…

Q: teven is thinking about buying a duplex. His monthly expenses will be $888 for the mortgage, $480…

A: The mortgage can be defined as a type of loan taken to purchase land, home, property, etc by making…

Q: . How much money invested in the present year to yield $2000 after three years at a 10% interest…

A: By rearranging a PV formula, we can solve for both questions. PV = FV(1+r)n Where FV = Future…

Q: What would be concluded about the South African Mobile Phone sector between 2008 and 2011? A. The…

A: Stock markets show ups and downs and stocks market are quite volatile in nature but overall market…

Q: If all of the following mutual funds are designed to passively mimic the S&P 500 stock index, which…

A: Mutual funds refer to the money that is being managed by a professional fund manager. It works as a…

Q: A bridge that was constructed at a cost of P 7.5 M, is expected to last 30 years at the end of which…

A: On a company's balance sheet, a capitalized cost is an item added to the cost base of a fixed asset.…

Q: The best example of a well-stated, specific financial objective is to O achieve lower costs than any…

A: Financial objective of any firm would be to maximize shareholder wealth. This is achieved by proper…

Q: What are the advantages and disadvantages of a fixed principal, fixed interest loan? 4. What is the…

A: Please not that as per the guidelines, I am required to answer only the first three questions.…

Q: Citic Pacific Case study: Foreign Exchange scandal

A: CITIC Pacific is a diversified business platform with operations in energy, health, special steel…

Q: Sharp's current capital structure of 60% equity, 35% debt, and 5% preferred stock is considered…

A: The capital structure of a company is comprised mainly of debt and equity. Debt refers to the funds…

Q: Vin decides he wants a brand new sports car to race. He has just taken out an $90,000 loan to…

A: Loan options for lumpsum amounts can be compared using the future value concept. Effective rate of…

Q: What is the Modified duration of a portfolio with one 2-year 10% semi-annual coupon bond and three…

A: Solution:- Modified duration measures that if interest rate changes by one percent, how much the…

Question

Cardiff Electronics Company had the following statement of comprehensive income for the most recent year.
Sales (17,000 units).
Less: Variable expenses.
Contribution.
Less: Fixed expenses.
Profit.
Given this data, the contribution per unit was:
Select one:
O A. £2
O B. £15
O C. £6
O D. £4
£357,000
225,000
102,000
68,000
£ 34,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Given Information:

VIEW

Calculations are as follow:

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

1. ValleMiramar has the following data: Net sales, P1.8 M; Costs of Goods Sold , P 1.08; Operating Expenses, P 315,000; Earning’s before interests and profit, P405,000; Net income, P195,000; Total Stockholders’ Equity P.75M; Total Assets P 1M. . The return on investment is: a. 22.5% b. 26.5% c. 19.5% d. 40.5% 2. Refer to no. 1 the debt. and operating ratio are a. .25 and .775 c. .25 and .175 b. .75 and .775 d. .75 and .175 3. Extracts from the balance sheet ( 000,000 ) of A Co. as follows: Current Assets Merchandise Inventory P 77.1 Accounts Receivable 50.1 Cash on Hand and in 85.0 Creditors: Amounts falling due within one year 70.2 Bank Overdraft Other Creditors…
what is the dollar sales to attain that target profit is closest to Data concerning Strite Corporation's single product appear below: Selling price per unit Variable expense per unit Fixed expense per month $ 150.00 $ 42.00 $421,200 He Assume the company's target profit is $8,000. The dollar sales to attain that target profit is closest to: (Round your i calculations to 2 decimal places.)
NAPOLEN SALES REVENUE IS $ 500000 , VARIABLE COST IS 20000 , FIXED C OST FOR THE YEAR IS $ 50000 SHOW THE NET PROFIT IN THE INCOME STATEMENT
Assume a company reported the following results: Sales $ 400,e00 Variable expenses Contribution margin Fixed expenses 260,e00 140,000 96,e00 Net operating income $ 44,000 Average operating assets $ 350, 000 The margin is closest to: Muitiple Choice 12.9%. 35.0%. 114.3%.
A company’s contribution approach income statement showed net operating incomeof $4,000, and fixed expenses of $10,000. How much contribution margin did thecompany earn?a. $29,000b. $15,000c. $19,000d. $14,000
A company sells one product and its contribution margin ratio is 10%. The company provides the following data regarding their operation: Current sales revenue $3,540,000 $3,681,600 Expected sales revenue next year Expected increase in net operating income next year 12% Q. What is the net operating income for the current year? ANS. $
Shalom Company provided you the following data: Net operating income Total liabilities Contribution margin Average operating assets Sales 150,000 350,000 400,000 750,000 800,000 What is the return on investment?
Concord Inc. is the only player in the classy snow shovel market. The variety of shovel designs includes camouflage (both green and pink, of course), snowman, beach, and northern lights. Concord purchases basic aluminum snow shovels from a supplier, applies its durable designs, and sells the shovels for $40 each. Last year, the company generated $52,000 in operating income, based on the following details. Sales volume in units Operating expenses DM cost per unit DL cost per unit Variable-MOH per unit Fixed-MOH per unit 9,500 $87,000 $6.00 $6.00 $8.00 $2.00 This year, the company realizes that its operating expenses will increase by $14,000 and its direct labor costs will increase by 20% per unit.
he HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost / revenue relationship for the coming year is expected to follow the same pattern as in the preceding year income statement for the year ending March 31 is as follow s Sales (200,000 units @ 2.5 Each) Rs. 5, 00,000 Variable cost 3, 00,000 Contribution margin 2, 00,000 Less Fixed cost 100,000 Profit before tax 100,000 Less tax 35,000 Profit after tax 65,000 Required The company management feels that it should earn at least Rs.10, 000 pre taxes per annum on the new investment what sales volume is required to enable the company to maintain existing profit.
Suppose the net sales is 1,60,000 for a firm and cost of goods sold is 40,000. Calculate gross profit ratio,
Leete Inc. reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income 14.000.000 9.660.000 4,340,000 3,620,000 720,000 The Company's average operating assets were $8,000,000. It's minimum required return was 8%. 1. What is the company's margin percentage? 2. What is the company's turnover? 3. What is the company's return on investment? 4. What is the company's residual income?
Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. TannenhillCompany ElectronicsIndustryAverage Sales $4,000,000 100.0 % Cost of goods sold (2,120,000) (60.0) Gross profit $1,880,000 40.0 % Selling expenses $(1,080,000) (24.0) % Administrative expenses (640,000) (14.0) Total operating expenses $(1,720,000) (38.0) % Operating income $160,000 2.0 % Other revenue and expense: Other revenue 120,000 3.0 Other expense (80,000) (2.0) Income before income tax expense $200,000 3.0 % Income tax expense (80,000) (2.0) Net income $120,000 1.0 % a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the…

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS