Reference no: EM131026408
Break Even Analysis (Remember your Algebra!!)
An airline company has Fixed Costs of $100 million and Variable Costs Per Unit of $2 million. Planes sell for $3 million each. What is the company’s breakeven point in terms of number of planes that need to be sold to break even?
1. If the airplane company wants to make a profit of $99 million annually, how many planes will it have to sell?
2. If the company can sell 200 planes in a year, how much annual profit will the form make?
2. I am an investor and I want to get into an industry. Problem is, I cannot decide which I’d rather invest in. Utilizing the financial data below analyze and compare the 2 years of data provided. Please use that information to advise me as to which company is in a better position…
BE DESCRIPTIVE AND SPECIFIC
GRADING SUMMARY:
1 Point for EACH financial ratio (60 Points total)
Working Capital
Current Ratio
Quick Ratio
Debt to Total Assets Ratio
Gross Profit Margin
Return on Total Assets (ROA)
Analysis of financial ratios (25 Points)
Break Even Analysis (15 Points)
Company A
|
In Millions
|
|
|
|
FINANCIAL INPUT
|
2010
|
2009
|
|
Net Income
|
$528
|
$555
|
|
Total Debt
|
$6,400
|
$5,589
|
|
Total Assets
|
$8,859
|
$8,776
|
|
Sales
|
$5,636
|
$5,531
|
|
Cogs
|
$2,243
|
$2,234
|
|
Current Assets
|
$1,309
|
$1,279
|
|
Current Liabilities
|
$1,338
|
$854
|
|
Inventory
|
$244
|
$262
|
|
Company B
|
In Millions
FINANCIAL INPUT
|
2010
|
2009
|
Net Income
|
$4,313
|
$3,609
|
Total Debt
|
$31,687
|
$29,383
|
Total Assets
|
$69,206
|
$63,117
|
Sales
|
$38,063
|
$36,149
|
Cogs
|
$31,337
|
$30,452
|
Current Assets
|
$12,225
|
$11,889
|
Current Liabilities
|
$11,000
|
$8,934
|
Inventory
|
$1,442
|
$1,271
|
PROFITABILITY RATIOS
|
|
|
|
Return on Assets (ROA)
|
=
|
Net Income
|
|
Total Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit Margin
|
=
|
Sales - CoGS
|
|
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIQUIDITY RATIOS
|
|
|
|
Current Ratio
|
=
|
Current Assets
|
|
Current Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quick Ratio
|
=
|
Current Assets - Inventory
|
Current Liabilities
|
|
|
|
|
|
|
|
|
Working Capital
|
=
|
Current Assets - Current Liabilities
|
Given: the following values
: Given: the following values vi = 22.4 m/s vf = 0 m/s
|
What are the first steps you take for corrective action
: What are the first steps you take for corrective action, to whom do you address this variance problem, and why do you feel that they should be held responsible?
|
How many more traffic sensors need to be installed
: Assume that no vehicles park anywhere within the network. If possible, calculate the traffic flows f1 through f7. If not, determine how many more traffic sensors need to be installed (within the network) and obtain the expressions for the other tr..
|
What is the level of public saving in this economy
: What is the level of private saving in this economy? What is the level of public saving in this economy? What is the level of national (public plus private) saving in this economy
|
If the airplane company wants to make a profit
: If the airplane company wants to make a profit of $99 million annually, how many planes will it have to sell?
|
How does this structure account for the fact
: Nitrogen dioxide (NO2) is the only important gaseous species in the lower atmosphere that absorbs visible light. Write the Lewis structure(s) for NO2.
|
Write the likely rate law for this reaction
: At 298 K the rate constant for this reaction is 4.8 X 105M-1 s-1 ,Based on the units of the rate constant, write the likely rate law for this reaction.
|
Briefly introduce the cisco system
: Briefly introduce the Cisco System Inc. background (e.g., name, products, business size, location, internal/external interesting facts, and etc.) in 1 page ( double space)
|
Retail innovation strategy essay
: Retail Innovation Strategy Essay. A 3 - 5 page essay on how innovation should be incorporated Retail Strategy. Identify 2 innovations to ensure you have a global reach. Need 2 sources from APUS library.
|