get Co. currently sells 800 widgets per week for a price of $7.00 each. Their market research indicates that for each $0.50 increase in price they will sell 25 fewer widgets per week. What price should they charge to maximize sales

H2. A clothing manufacturer is considering whether to add hoodies to its range of products. The hoodies would sell for $45 each and the company expects to sell 10,000 units per year. Selling hoodies, however, would cause sales of conventional jumpers to decrease by 1,000 units per year. The jumpers sell for $43 per unit. The variable costs of production are $25 per unit for hoodies and $20 per unit for jumpers. If the company adds hoodies to its range of products, fixed costs will increase by $56,000 per year and annual depreciation will increase by $21,000. What is the incremental operating cash flow from selling hoodies, if the corporate tax rate is 30%?    Please show proper step by step calculation

Gidget has a new widget to bring to market.  If the firm goes directly to market with the product, there is a 60% chance of success.  However, the firm can conduct customer segment research, which will take a year and cost $5,000,000.  By going through research, the company can better target potential customers and increase the probability of success to 75%.  If successful, the widget will bring a present value profit (at the time of initial selling) of $90 million.  If unsuccessful, the present value profit is only $15 million.  The appropriate discount rate is 10%. Calculate the NPV for conducting customer segment research. (Enter whole numbers, e.g. 5 million should be 5,000,000)

B&B has a new baby powder ready to market. If the firm goes directly to the market with the product, there is only a 55 percent chance of success. However, the firm can conduct customer segment research, which will take a year and cost $875,000. By going through research, B&B will be able to better target potential customers and will increase the probability of success to 70 percent. If successful, the baby powder will bring a present value profit (at time of initial selling) of $16.5 million. If unsuccessful, the present value payoff is $7.5 million. The appropriate discount rate is 13 percent.    Calculate the NPV for the firm if it conducts customer segment research and if it goes to market immediately. (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.     Should the firm conduct customer segment research or go to the market immediately? multiple choice…

Apple Incorporated, the worlds leading manufacturer of mobile phones, currently sells their cellphones for 90,000 per unit. This phone costs 60,000 to manufacture. Pineapple Company, the second leading manufacturer of cellphones, revealed that they would be unveiling a new model of phone that will sell for 70,000. This new phone contains all the features and performs at par with Apple’s phones. To keep up with the competition, Apple management believes that they should lower the price to 70,000. The Marketing Department also believes that the new price will cause sales to increase by 10% even with a new cellphone in the market. Apple currently sells 150,000 units of their phones annually. What is the target cost of Apple’s products if the target operating income is 20% of sales?

Rolf's Golf store sells golf balls for $27 per dozen. The store's overhead expenses are 26% of cost and the owners require a profit of 18% of cost. a. How much does Rolf's Golf store buy the golf balls for?   _____per dozen   b. What is the price needed to cover all the costs and expenses?     c. What is the highest rate of markdown at which the store will still break even?       d. What markdown rate would price the golf balls at cost?

Meyerson's Bakery is considering the addition of a new line of pies to its product offerings. It is expected that each pie will sell for $15 and the variable costs per pie will be $9. Total fixed operating costs are expected to be $25,000. Meyerson's faces a marginal tax rate of 35%, will have interest expense associated with this line of $3,500, and expects to sell about 4,200 pies in the first year. a. Create an income statement for the pie line's first year. Is the line expected to be profitable? b. Calculate the operating break-even point in both units and dollars. How many pies would Meyerson's need to sell in order to achieve EBIT of $20,000? C. d. Use the Goal Seek tool to determine the selling price per pie that would allow Meyerson's to break even in terms of its net income. e. Calculate the DOL, DFL, and DCL for the new pie line.

11) Istanbul Company currently sells cellphones for $500. It has costs of $320. A competitor is bringing a new cell phone to market that will sell for $430. Management believes it must lower the price to $430 to compete in the market for cell phones. Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Istanbul Company sales are currently 100,000 cell phones per year. What is the target cost if the company wants to maintain its same income level, and marketing is correct (rounded to the nearest cent)? A) $224.00 B) $238.18 C) $266.38 D) $290.00 E) $311.00

A furniture's store is considering tow marketing strategies: a loyalty program that would cost $3,000 and increase revenue by $15,000, or a seasonal sale that would cost $5,000 and increase revenue by $25,000. The store's contribution margin is 30%. Which strategy should they pursue if the goal is to maximize ROMI? What about if the goal is to maximize revenue growth?

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