What is the target variable cost per mouse

Assignment Help Financial Management

Reference no: EM131070564

A company believes it can sell 5,200,000 of its proposed new optical mouse at a price of $11.00 each. There will be $8,000,000 in fixed costs associated with the mouse. If the company desires to make a profit $2,000,000 on the mouse, what is the target variable cost per mouse?

Reference no: EM131070564

Questions Cloud

Describe hedging techniques and evaluate their effectivness : Describe the hedging techniques, and evaluate their effectiveness, that portfolio managers can use to hedge the stock market decline in china market stock crash in 2015.and in china stock market could use option and forward contract, which one is eff..

Receivables turnover times what are annual credit sales : Evil Pop, Inc., has an average collection period of 70 days. Its average daily investment in receivables is $45,300. Assume 365 days per year. What is the receivables turnover? (Do not round intermediate calculations and round your answer to 4 decima..

Other real estate in a qualifying like-end exchange : Cary exchanges real estate for other real estate in a qualifying like-end exchange. Carey's basis in the real estate given up is $120,000, and the property has a fair market value of of $165,000. In exchange for her property, Carey receives real esta..

What will be the required rate of return for that instrument : If the real rate of interest is 3%, expected inflation is 2%, the default risk premium is 6%, the liquidity premium is 2%, and the maturity premium is 2% for an instrument, what will be the required rate of return for that instrument?

What is the target variable cost per mouse : A company believes it can sell 5,200,000 of its proposed new optical mouse at a price of $11.00 each. There will be $8,000,000 in fixed costs associated with the mouse. If the company desires to make a profit $2,000,000 on the mouse, what is the targ..

The beta be for the other stock in your portfolio : You own a portfolio equally invested in a riskfree asset and two stocks. If one of the stocks has a beta of 1.5 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio?

Calculate total cost of financing using aggressive strategy : Gardenia Company can acquire short-term finds at 4% and long-term funds at 6%. Gardenia Company has a permanent working capital need of $100,000, and a seasonal working capital need that varies from $0 to $600,000, and averages $200,000. They can inv..

Forecaston received in total revenue over past five years : The City of Forecaston received the following in total revenue over the past five years. Use this information to answer the next three questions. 2011 = $800,549

What is the projects year zero net cash flow : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.58 million. The fixed asset falls into the three-year MACRS class. If the tax rate is 34 percent, what is the project’s Year 0 ne..

User Account

All Pages