What is the break-even point

Assignment Help Financial Management
Reference no: EM13667002

The Smith Company's fixed costs for the year are estimated at $1,000,000. The variable costs are usually about 70 Percent of sales. Sales for the coming year are expected to reach $3,800,000.

1.What is the Break-even Point?
2.Expected profit at a sales level of $3,800,000?
3. If sales are only $2,000,000 should the company shut down? why?

Reference no: EM13667002

Previous Q& A

  Policy of quantitative easing benefit or hurt smaller

Did the Federal Reserve's policy of quantitative easing benefit or hurt smaller and more entrepreneurial firms over the past five years? What evidence supports your position?

  The various decision-making tools listed

1. Evaluate the advantages and disadvantages of the various decision-making tools listed (e.g., regular payback, discounted payback, net present value (NPV), internal rate of return (IRR), and modified internal rate of return).

  Weights used in calculating the wacc

Weights used in calculating the WACC

  Use at least two capital budgeting methods

TCO F) Company A has the opportunity to do any, none, or all of the projects for which the net cash flows per year are shown below. Projects A and B can be done together. Projects B and C can be done together. But Projects A and C are mutually ..

  What are the ethical issues

What are the ethical issues?

  Fairly compensated for the risk of the firm

The risk free rate is 7%, the return in the market is 10%, and the beta is 1.30. What return must you receive to be satisfied that you are being fairly compensated for the risk of the firm?

  A rational investor be indifferent between the banks

Even if the five banks provided the same effective annual rate, would a rational investor be indifferent between the banks? Explain.

  An investor requires a return of risky security

An investor requires a return of 12 percent of risky securities

  A closed system consists of four objects

A closed system consists of 4 objects. Initially, object A has a charge of -200 C, object B has a charge of 134 C, object C has a charge of-54 C, and object D has a charge of146 C. After 219s have passed, object A has a -108 C charge, object B has a ..

  Risk and return

Risk and Return

Reviews

Write a Review

 

Similar Q& A

  What is her profit - loss

An investor writes (or sells) one put option contract. If the price of gold in the spot market at the maturity date of the option is $1095, what is her profit-loss - The spot rate for the euro when the forward contract matures is $1.50/€. What is h..

  Answer the following questions given the following call

answer the following questions given the following call option prices on google goog and on apple appl. the 2-month

  Managerial theories are based on historical approaches

Many of the approaches to management and/or managerial theories are based on historical approaches to management and/or historical managerial theories.

  Discuss the following topic should investors care about a

discuss the following topic should investors care about a multinational firms accounting exposure?accounting exposure

  Bonds foreign bonds are bonds sold by a foreign borrower

foreign bonds are bonds sold by a foreign borrower but denominated in the currency of the country in which the issue is

  Financial strategies, capital budgeting analysis

MBA 612, Financial Strategies, Capital Budgeting Analysis, Word Report and PowerPoint Presentation

  Review current aasb framework

Review current AASB framework which is also known as "Framework for the Preparation and Presentation of Financial Statements" and provide a critical analysis of different measurement bases.

  Should china be forced to alter the value

Counter-point of this argument and express your opinion on this topic One to two paragraph and while in the discussion, read the point and counter-point which I have provided on this topic, then click on the forum in which you'd like to comment.

  Suppose youve just been assigned to project risk team of

assume you have just been assigned to a project risk team of five members. because this is the first time your

  Wilson wonders bonds have 12 years remaining to maturity

wilson wonders bonds have 12 years remaining to maturity. interest is paid annually the bonds have a 1000 par value and

  How does dividend payment affect stock price

What are advantages and disadvantages of stock repurchases relative to traditional dividend payments and how does dividend payment affect stock price? any supporting evidence?

  Find the most interesting in regards to migratin

What did you find the most interesting in regards to migrating to a cloud solution from a customer perspective?

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