Determine sales volume in units
Course:- Finance Basics
Reference No.:- EM1349776

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Finance Basics

1- Excalibur corporation has developed a model to predict sales revenues for its line of beach towels and swimwear based on long-range weather forecasts. The probability of means temperature and related sales of product line units are as indicated below:
Unit sales Temperature Probability
10,000 75-79 5%
30,000 80-84 25
50,000 84-87 50
40,000 87-89 15
25,000 over 90 5
What sales volume in units would the Excalibur corporation anticipate using the expected value approach

A. 31,000
B. 40,000
C. 50,000
D. 155,000

2- Mo' Joe Coffee shops is concerned as to whether its brand name is working and wants to compute its market share variance to measure the effect of the company's market share on the company's contribution margin. He sold 90,000 units compared to budgeted 120,000 units in a market that regularly commands 500,000 units in sales. The budgeted contribution margin per unit is $.88 while the actual contribution margin achieved was %.56 per unit. The market share variance is

A. 26,400
B. (26,400)
C. 16,800
D. (16,800)

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Finance Basics) Materials
ABC needs to increase $50 Million by issuing common stock in an IPO. ABC will use the proceeds to pay down 8 percent coupon debt. ABC right now has 20 million shares outstandi
Doug, age 40, is the owner of a small firm that sells window blinds and cleans carpets. The company provides health insurance for seven employees. The wife of one employee h
David and Mary are a dual-career couple who just had their first child. David, age 28, already has a group life insurance policy, Help Mary evaluate this advice and decide on
The spot exchange rate for Indian Rupees is Rs 44/$. The one-year forward exchange rate is Rs 46/$ and the one-year U.S. interest rate is 5%. What is the implied one-year in
a. On what day did the trading activity occur? b. At what price did the stock sell at the end of the day on Wednesday, December 13? c. What is the last price at which the stoc
Buner Corp.'s outstanding bond, which has a coupon rate equal to 8 percent and a $1,000 face value, matures in six years. If investors require a rate of return equal to 12 p
Elena Diaz is 57 years old and has been widowed for 13 years.  Never remarried, she has worked full-time since her husband died-in addition to raising her two children, the
Has the movement of your stock price varied greatly from that of the S&P500? Has the price of your stock increased (or decreased) significantly over the past five years?