How many units must be sold to achieve the target profit

Assignment Help Financial Management
Reference no: EM13909423

Crow, Inc., a not-for-profit company, has a product contribution margin of $40. The fixed costs are $800,000. Crow, Inc., has set a target profit of $35,000 per year. A. What is the breakeven point in units? B. How many units must be sold to achieve the target profit? C. If fixed costs decrease 10 percent, how many units must be sold to achieve the target profit?

Reference no: EM13909423

Questions Cloud

What is the equivalent annual savings : Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball for $220,000 and sell its old low-pressure glueball, which is fully depreciated, for $40,000. The new equipment has a 10-year useful life and will sa..
Find an expression for e in terms of p a and b : Find an expression for E [SJ ] in terms of p, a, and b, where p = Pr{SJ ≥ a}. Find an expression for E [SJ ] from Wald's equality. Use this to solve for p.
Find an article from an established business magazine : write a 250-word summary of the article. What was it about? Who were the key characters? Is it a global story or a local story? Things like that.
What is the annual ocf for the project : Rolston Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $26,400, and the company expects to sell 1,500 per year. The company currently sells 1,850 units of its existing model per year..
How many units must be sold to achieve the target profit : Crow, Inc., a not-for-profit company, has a product contribution margin of $40. The fixed costs are $800,000. Crow, Inc., has set a target profit of $35,000 per year. A. What is the breakeven point in units? B. How many units must be sold to achieve ..
Constant growth valuation-what is required rate of return : Harrison Clothiers' stock currently sells for $39 a share. It just paid a dividend of $1.75 a share (that is, D0 = 1.75). The dividend is expected to grow at a constant rate of 9% a year. What stock price is expected 1 year from now? What is the requ..
Proper selection is a substitute for socialization : Proper selection is a substitute for socialization An organization should follow a promote-from-within policy. Job analysis is just another burden placed on organizations through EEO legislation
Find the time average of the given quantity : Sketch the lower bound E [N(t)] /t ≥ 1/E [X] - 1/t on the same graph with (c). Sketch E rSN(t)+1 - tl as a function of t and find the time average of this quantity.
Describe the supply chain necessary to source, make : Analyze the design of the supply chain from a Lean perspective of each. Describe the supply chain necessary to Source, Make, and Deliver each product.

Reviews

Write a Review

Financial Management Questions & Answers

  Constant growth valuation-what stock price is expected

Woidtke Manufacturing's stock currently sells for $24 a share. The stock just paid a dividend of $3.50 a share (i.e., D0 = $3.50), and the dividend is expected to grow forever at a constant rate of 10% a year. What stock price is expected 1 year from..

  Forecasts of companys year-end inventory turnover ratio

Charlie's Cycles Inc. has $170 million in sales. The company expects that its sales will increase 10% this year. Charlie's CFO uses a simple linear regression to forecast the company's inventory level for a given level of projected sales. What are yo..

  Discuss the pros and cons of option

Merit Enterprise Corp. Sara Lehn, chief financial officer of Merit Enterprise Corp., was reviewing her presentation one last time before her upcoming meeting with the board of directors. Discuss the pros and cons of option 1, and prioritize your thou..

  Market portfolio is equally likely to increase

Suppose that the market portfolio is equally likely to increase by 24% or decrease by 8%. Security "X" goes up on average by 29% when the market goes up and goes down by 11% when the market goes down. Security "Y" goes down on average by 16% when the..

  Q1 veezee vz issues a 2-year floating rate bond in the

q1. veezee vz issues a 2-year floating rate bond in the amount of 100m on which it pays libor6 - 0.5 semi-annually.

  How can the case manager assist the client

How can the case manager assist the client in transitioning to therapy when it is necessary?

  What are the internal rates of return for the projects

what are the internal rates of return for the following projects?

  Uses the net present value method and has a discount rate

Dweller, Inc. is considering a four-year project that has an initial after-tax outlay or after-tax cost of $110,000. The future cash inflows from its project are $30,000, $25,000, $50,000 and $40,000 for years 1, 2, 3 and 4, respectively. Dweller use..

  Stock with an above-average standard deviation

A stock with an above-average standard deviation must also have an above-average beta. A two-stock portfolio will always have a lower standard deviation than a one-stock portfolio. A two-stock portfolio will always have a lower beta than a one-stock ..

  Stock with a beta

You bought a stock with a beta of 1.4 and earned a return of 8.3%. Did you outperform the market if, during the same period, the market rose by 7.4% and you could have earned 5.4% by investing in a Treasury bill?

  Chance to purchase a perpetual security

You have a chance to purchase a perpetual security that has a stated annual payment (cash flow) of $50. However, this is an unusual security in that the payment will increase at an annual rate of 5 percent per year; this increase is designed to help ..

  What are trusts preferred securities

What are trusts preferred securities? What role did they play in the recent financial crisis?

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