Viper Avionics makes aircraft instrumentation. Its basic navigation radio requires $ 60 in variable costs and $5,000 per month in fixed costs. Further processing the radio, to enhance its functionality, will require an additional $ 28 per unit of variable costs, plus an increase in fixed costs of $ 290 per month. The marketing manager believes that they would be able to increase the sales price of the radio from $ 290 to $ 310 Viper sells 45 radios per month. If Viper decides to further process the radio, monthly operating income would

Shue Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $23,600, and the company expects to sell 1,530 per year. The company currently sells 1,880 units of its existing model per year. If the new model is introduced, sales of the existing model will fall to 1,550 units per year. The old board retails for $22,000. Variable costs are 54 percent of sales, depreciation on the equipment to produce the new board will be $1,695,000 per year, and fixed costs are $2,975,000 per year. If the tax rate is 23 percent, what is the annual OCF for the project? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. OCF

Madetaylor Inc. manufactures financial calculators.  The company is deciding whether to introduce a new calculator.  This calculator will sell for $130.  The company feels that sales will be 18,000, 22,000, 24,000, 22,000, and 18,000 units annually for the next five years.  Variable costs will be 21% of sales, and fixed costs are $500,000 annually.  The firm hired a marketing team to analyze the product's viability, and the marketing analysis cost $1,250,000.  The company plans to manufacture and store the calculators in a vacant warehouse.  Based on a recent appraisal, the warehouse and the property are worth $2.5 million after tax.  If the company does not sell the property today, it will sell it five years from today at the currently appraised value.  This project will require an injection of net working capital at the onset of the project, $250,000.  The firm recovers the net working capital at the end of the project.  The firm must purchase equipment for $5,000,000 to produce the…

Sid's Skins makes a variety of covers for electronic organizers and portable music players. The company's designers have discovered a market for a new clear plastic covering with college logos for a popular music player. Market research indicates that a cover like this would sell well in the market priced at $24.00. Sid's desires an operating profit of 25 percent of costs.  Required: What is the highest acceptable manufacturing cost for which Sid's would be willing to produce the cover? (Round your answer to 2 decimal places.)