Evaluate the quantity at which revenue equals to costs (break-even point). Assumptions: Fixed cost: 5000 Material costs per item: 2.25 Labor costs per item: 6.5 Shipping costs per 100 items: 200 Price per item: 12.99
Q: REQUIRED Use the information provided below to calculate the following: 5.1 Payback period of both…
A: NPV, IRR and payback period are capital budgeting tools to decide on whether the capital project…
Q: If a small business fails to repay a bank loan, what will the lending institution do to recover its…
A: It is a case where the business is unable to repay its loan and the lending institution is…
Q: OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock…
A: A fixed dividend rate is frequently attached to preference shares, which indicates that the dividend…
Q: Noah has $4686 in his savings account today. The interest rate is 8,3% p.a. compounded monthly. Noah…
A: Loan amortization refers to the process of gradually paying off a loan through regular installment…
Q: How much interest (to the nearest dollar) would be saved on the following loan if the home were…
A: House cost = $509,000Down payment = 20%Loan period = 30 yearsInterest rate = 4.7%
Q: Last month, Lloyd's Systems analyzed the project whose cash flows are shown below. However, before…
A: 1. NPV means Net present value .It is a capital budgeting technique used for making investment…
Q: How much interest (to the nearest dollar) would be saved on the following loan if the condominium…
A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…
Q: Suppose the following exchange rate quotations are available: Citibank quotes U.S. dollars per
A: To check if there is an arbitrage opportunity, we need to check the cross-currency exchange rate of…
Q: Suppose you have $20,000 total. If you put $14,000 in Stock A and the remainder in Stock B, what…
A: Return of portfolio refers to adding each of the probable return, i.e expected return are multiplied…
Q: St. Johns River Shipyards is considering the replacement of an 8-year-old riveting machine with a…
A: Net Present Value - It is the difference between the present value of cash outflow and present value…
Q: You need $25,356 at the end of 9 years, and your only investment outlet is an 9 percent long-term…
A: Present value is an estimate of current value of future cash flows for a specific period of time at…
Q: Jenny bought a share of Athrax Company for $65 one year ago. The stock paid a dividend of $2.52 per…
A: Quarterly Dividend = $2.52Growth rate = g = 3%Selling Price of Stock = s = $87.10
Q: Assume that the Australian dollar's spot rate is $1.25 and that the Australian and U.S 1 year…
A: 1. According to international Fischer effect,St = So × Where,St = spot rate in future So = current…
Q: ose your gross monthly income is $5,300 and your current monthly payments are $625. If the bank will…
A: Mortgage loans are secured loans paid by monthly payments but how much loan you can get depend on…
Q: Find the amount of periodic payment necessary for the deposit to a sinking fund. (Round your answer…
A: To calculate the amount of periodic payment necessary for the deposit to a sinking fund, you can use…
Q: (Future value of a complex annuity) Springfield mogul Montgomery Burns, age 75, wants to retire at…
A: Withdrawal Amount = a = $1.1 billionTime after retirement = t = 6 yearsInterest rate = r = 19%Number…
Q: You've uncovered the following per-share information about a certain mutual fund: On the basis of…
A: According to bartleby guidelines , if question involves multiple sub parts , then 1st sub 3 parts…
Q: (Present value of an annuity due) Determine the present value of an annuity due of $2,000 per year…
A: The PV of an annuity refers to the total value of the cash flows of the annuity after they have been…
Q: If you invest $10,000 per period for the following number of periods, how much would you have in…
A: Annual Investment = pmt = $10,000Time = nper = 50 yearsInterest rate = rate = 8%
Q: Suppose the government decides to issue a new savings bond that is guaranteed t double in value if…
A: The rate of return refers to the minimum return that is being earned by the investors on the…
Q: A company has the following income statement. What is its net operating profit after taxes (NOPAT)?…
A: Net operating profit after taxes is also called as NOPAT. It is the profit which is earned by the…
Q: a. Calculate the profitability index for each investment. (Do not round intermediate calculations…
A: Profitability Index or PI is the ratio of present value of operating cash inflows to the present…
Q: Dudley Savings Bank wishes to take a position in Treasury bond futures contracts, which currently…
A: Here,Current Quoted Price is 125-100Face Value of Future is $100,000Interest Rate will go down in…
Q: New Mexico Lumber recently reported that its earnings per share were $2.5. The company has 400,000…
A: Earning Per Share = EPS = $2.5Number of Share = n = 400,000Interest Expenses = $500,000Tax rate = t…
Q: Leo needs a home loan. According to his income, he could borrow $1405956 in maximum when the…
A: Loan amortization refers to the process of paying off a loan over time through regular payments that…
Q: A project has estimated sales of 14,500 units, ±3 percent. The expected variable cost per unit is…
A: Sensitivity analysis is a technique that is used to identify the impact of change of one variable…
Q: BioScience Inc. will pay a common stock dividend of $3.55 at the end of the year (D1). The required…
A: Expected Dividend = d1 = $3.55Required rate of return = Ke = 20%Growth Rate = g = 10%
Q: Gen Corporation is expected to pay a dividend of $3.50 per year indefinitely. The appropriate rate…
A: Expected dividend = $3.50Rate of return = 11%Ex-dividend =35 days before the dividend payment date
Q: Find the present value of the ordinary annuity. (Round your answer to the nearest cent.) Amount of…
A: Monthly deposits = $100Frequency = QuarterlyInterest rate = 9%Time = 20 years
Q: om Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 20-year life…
A: Bonds are sources of investment and finance for long term.They are paid periodic coupon payments and…
Q: The following questions are Multiple Choice: You have been asked by the president of your company to…
A: NPV is Net present value which can be determined by discounting all future cash flows at required…
Q: -W-h-y- -d-o- -y-o-u- -s-u-p-p-o-s-e- -t-h-a-t- -la-r-g-e-,- -w-e-l-l-k-n-o-w-n- -c-o-m-p-a-n-i-e-s-…
A: Costs: The listing fees for NASDAQ are generally lower than those of the NYSE. For large,…
Q: Company A can borrow money at a fixed rate of 9 percent or a variable rate set at prime plus 1…
A: During swap arrangement, the swap dealer receives the interest as per the preference of borrowing…
Q: CX Enterprises has the following expected dividends: $1.15 in one year, $1.23 in two years, and…
A: Companies can distribute their earnings to shareholders by paying dividends. Companies give…
Q: Which of the following statements is CORRECT? NVP 0 X? 1. X-$80 II. Y-7.65% Y? III. Z-19.44% Z? I,…
A: The relationship between Net Present Value (NPV) and the discount rate is crucial in evaluating the…
Q: 7. Valuing semiannual coupon bonds Bonds often pay a coupon twice a year. For the valuation of bonds…
A: It is a case of the valuation of a bond that pays semi-annual coupons to the investors. It has a…
Q: Two annuities are available for purchase that your client has identified. The first annuity pays…
A: It is a case of comparison of an annuity of payments. The decision is based on the net present value…
Q: For the car loan described, give the following information. A car dealer will sell you the $30,250…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: 17. Calculating Rates of Return (LO3) The "Brasher doubloon," which was featured in the plot of the…
A: When investment travels over no of years the annual rate of return on an asset or investment is…
Q: Connie wants to have an annuity payment of $2,050 at the end of every three months. How much should…
A: Annuity amount, P = $2,050 Interest rate per period, r = Number of compounding periods, n =
Q: The Neal Company wants to estimate next year's return on equity (ROE) under different financial…
A: Data given:Capital = $16 millionFederal-plus-state tax rate = 25%EBIT of three possible…
Q: Natasha's Flowers, a local florist, purchases fresh flowers each day at the local flower market. The…
A: Here,ParticularsNPV per BunchCost per BunchMax. BunchesProfitability IndexRankingRoses $ 3 $…
Q: Munoz Manufacturing Company has an opportunity to purchase some technologically advanced equipment…
A: Introduction:Internal rate of return (IRR ) of a project is the discount rate which makes net…
Q: (Saving for retirement-future value of an annuity) Selma and Patty Bouvier are twins and both work…
A: Here,ParticularsSPAnnual deposits (PMT) $ 2,500.00 $ 2,500.00Interest rate…
Q: The current price of the underlying instrument is 1000 PLN. In a year (right after the expiry of the…
A: Spot price of Instrument = 1000 PLNInstrument rate for 1 year = r = 5%Instrument rate for half year…
Q: 4-132. Higher interest rates won't cost you as much to drive a car as do higher gasoline prices.…
A: The interest rate that borrowers are liable for on an annual basis is commonly referred to as the…
Q: Billingsley United declared a $0.20 a share dividend on Thursday, October 16. The dividend will be…
A: Due to multiple questions, we can answer only first question as per guidelines.In the given…
Q: Use a calculator to evaluate the amortization formula for the values of the variables P, r, and t…
A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…
Q: Role of Central Banks and Moral Hazards How does central bank intervention outweigh the risks of…
A: Moral hazard is the issue, faced by the institutions. Though it can be outweighed by the…
Q: The Lesseg Company has an opportunity to invest in one of two mutually exclusive machines that will…
A: The sum of all PV is the net present value. This is the dollar profit that the project makes today.…
Evaluate the quantity at which revenue equals to costs (break-even point). <use Goal seek>
| Assumptions: | |
| Fixed cost: | 5000 |
| Material costs per item: | 2.25 |
| Labor costs per item: | 6.5 |
| Shipping costs per 100 items: | 200 |
| Price per item: | 12.99 |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Given the mixed cost function y = $6.50x + $3,000. What does the $6.50 represent? a.Total cost per unit of the cost driver b.The fixed cost per unit c.The slope of the cost function d.Total fixed costsAssume that the situation can be expressed as a linear cost function. Find the cost function in this case. Marginal cost: $60; 120 items cost $8000 to produce. The linear cost function is C(x)= FEERefer to the pictur ebelow: Find: 1. Total Cost of Product A under ABC System2. Total Cost of Product B under ABC System3. Selling Price per unit of Product B assuming profit margin of 20% above cost
- Management has at its disposal the following information: Revenue function: R =890Q ‒5.5Q2 The profit-maximizing price: P=494 OMR. Then the Profit-maximizing quantity is (............) Units. (write only the number) Answer:4) Determine the missing amounts. Contribution Contribution Unit Selling Price Unit Variable Costs Margin Per Unit Margin Ratio 1. $300 $180 A в 2. $600 C $210 D 3. E F $300 30%compute for the following items: d. Contribution margin ratio e. Breakeven point in pesos f. Breakeven point in unit sales
- Find the profit maximizing output given the following revenue and cost functions:R(q) = 1000q – 2q2C(q) = q3 – 59q2 + 1315q + 20002. Complete the table below by filling out the missing values. Provide a solution. Absorption Costing Variable Costing Quantity ? Unit Price Amount Quantity ? Unit Price Amount P 30.00 12.00 Sales ? ? ? Variable CGS 8,000 ? ? ? ? 3.00 2.50 4.00 Fixed Overhead ? ? 10,000 ? ? Variable expenses Fixed expenses ? ? ? ? ? ? ? Profit ? ? ? ?The amount of a units sales price that helps to cover fixed expenses is its ____________________. A. contribution margin B. profit C. variable cost D. stepped cost
- Problem Three: I) Given the revenue function R(x) = x³ + 3x²+ x .Find the average revenue of producing 100 units. II) Given the marginal revenue function MR = -x3+ 2x²+ 4x – 1. Find the revenue function.46. Revenue, cost, and profit. The price-demand equation and the cost function for the production of HDTVS are given, respectively, by x 9,000 - 30p and C(x) = 150,000 + 30x where x is the number of HDTVS that can be sold at a price of $p per TV and C(x) is the total cost (in dollars) of produc- ing x TVs.Q-2) Using the quick and dirty method, what is the approximate monthly fixed cost? the approximate variable cost per unit processed? show your computations.