Cost-volume-profit analysis

Assignment Help Financial Management
Reference no: EM131188087

Cost-Volume- Profit Analysis

Cost-Volume- Profit (CVP) is an excellent tool for analyzing short-term financial decisions. Assume the following current information:

sales price per unit $7.50

total fixed costs $250,000

unit volume 125,000

What does the variable cost per unit need to be in order to break even (operating margin becomes $0) at this volume?

a. $7.50

b. $5.50

c. $2.00

d. $6.50

e. none of the above

Reference no: EM131188087

Questions Cloud

After-tax market rate of return on development investments : The research and development division of a large corporation is considering the purchase of a new tunneling X-ray microscope for $320,125. The projected net benefits from gains in materials engineering is projected to be $127,000 in today’s real doll..
Annual dividends on this preferred stock : Golden Rod Corps preferred stock is selling for $65.26. The company pays $5.25 annual dividends on this preferred stock. Which rate of return does the investor expect to receive on this stock if the stock is purchased today?
What will your homemade dividend be in two years : You own 1,800 shares of stock in Avondale Corporation. You will receive a $1.50 per share dividend in one year. In two years, Avondale will pay a liquidating dividend of $80 per share. The required return on Avondale stock is 25 percent. Suppose you ..
Effective annual interest rate on this lending arrangement : Come and Go Bank offers your firm a discount interest loan at 8 percent for up to $15 million, and in addition requires you to maintain a 4 percent compensating balance against the amount borrowed. What is the effective annual interest rate on this l..
Cost-volume-profit analysis : Cost-Volume- Profit (CVP) is an excellent tool for analyzing short-term financial decisions. Assume the following current information: What does the variable cost per unit need to be in order to break even (operating margin becomes $0) at this volume..
Treasury bond futures contract with an exercise price : If you buy a put option on a $100,000 Treasury bond futures contract with an exercise price of 95 and the price of the Treasury bond is 120 at expiration, is the contract in the money, out of the money, or at the money? What is your profit or loss on..
What is debt to capital ratio : The treasury operation of Douglas Co. has provided the following information to Business Development so they can estimate their Cost of Capital (Overall or Weighted Average)for applications in appropriation requests: Cost of Debt Pre-tax 6% Marginal ..
Using the modified internal rate of return : Tall Trees, Inc. is using the modified internal rate of return (MIRR) when evaluating projects. The company is able to reinvest cash flows received from the project at an annual rate of 14.23npercent. What is the MIRR of a project if the initial cost..
Internal rate of return and payback period : The finance team of Saray Co. has put together the following cash flow that you will need to make an accept/reject decision on using tools such as Net Present Value (NPV), Internal Rate of Return (IRR)and Payback period. The $1,400 per year cash flow..

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd