Calculate markup price and contribution margin

Assignment Help Corporate Finance
Reference no: EM1346678

Diamond Machine Technology makes a tool for sharpening the blades of pruning sheers and grass clippers. The company has invested $250,000 in developing this sharpener, which it would like to make back in the first year. This tool is about the size of a piece of chewing gum and costs $3 to make. Fixed costs for the sharpener are $10,000 per month. Diamond Machine's markup on sales is 30 percent.

Calculate: a.) its markup price; b.) contribution margin; c.) monthly breakeven volume; d.) year one breakeven volume with expected level of profit

 

Reference no: EM1346678

Questions Cloud

How much heat it take to increase the temperature : Old MacDonald had a farm, and on that farm he had a gate (see below). The gate is 3m wide and 1.8m high, with hinges attached to the top and bottom. The guy wire makes an angle of 300 with the top of the gate and is tightened by a turn buckle to a..
A canoe as well as recreation club recently filed suit along : A canoe as well as recreation club recently filed suit alongside a number of manufacturing plants located along the Missouri River. In the suit the club appealed that the plants failed to adequately treat the waste that is being discarded into the..
Nature of organizational communication and methods : Expalin how these have effects in productivity and motivation - Nature of Organizational Communication and methods
Tesla corporation wants to raise funds to finance : Tesla Corporation wants to raise funds to finance a plant expansion as well as it has decided to issue 30-year zero coupon bonds to increase the money
Calculate markup price and contribution margin : Diamond Machine Technology create a tool for sharpening blades of pruning sheers & grass clippers. The corporation has invested dollar 250,000 in developing this sharpener,
Question related to communication methods : Expalin what makes each method effective and how your tone would impact communication to each of these audiences
Find that what is the force constant of the spring : A 30.0 capacitor initially charged to 30 is discharged by a 1.40 resistor. How long does it take to reduce the capacitor's charge to 2.00.
Traditional scientific management study : While Elton Mayo formerly intended to collect data for a traditional scientific management study,
Show the significance of the communication process in pr : Interference in the Communication Process for PR Professionals - Expalin what is the significance of the communication process in PR

Reviews

Write a Review

Corporate Finance Questions & Answers

  Issuing or purchasing preferred stock

You are told that one corporation just issued 100m dollar of preferred stock & another purchased 100m dollar preferred stock as an investment.

  Create income statement for the current month

Regal Flair Enterprises has two product lines: jewellery & women's apparel. Cost & revenue data for every product line for current month are as follows;

  Corporate governance

Corporate governance mechanisms

  Determine 5-year annually compounded growth rate of dividend

Determine a 5-year annually compounded growth rate of dividends per share for MCD. Does the recent growth in MCD dividends conform closely to the model used in Question 3? Does the disparity raise questions in your mind about the growth assumption..

  Calculate the future value of stock

A share of stock sells for 53 dollar today. The beta of the stock 1.2, & expected return on the market is 12 percent. The stock is expected to pay a dividend of 1.10 dollar in one year.

  Find the firm ebitda

Jack's Art Gallery trade 200 original works of art for $1,240,520. The gallery acquired the works trade for dollar 530,000. Every painting was framed using pre-designed framing kits in gallery's own workshop.

  Purpose a monthly income and expense plan for terrels

Preparation of monthly income and expense plan and analysis of financial position - Purpose a monthly income and expense plan for the Terrels in 2003.

  Explain financial institutions and market opportunities

Explain how does job of finance manager relate to economics and accounting and discuss the primary activities and the decisions required of Financial Manager.

  Evaluating financial statement data

Horizontal analysis is a technique for evaluating financial statement data and Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time

  Evaluate and interpret the two profit variances

Evaluate and interpret the two profit variances and evaluate and interpret the two revenue variances

  Implementation of financial data in a business

In this course, you have expanded understanding of finance in terms of measures taken & implementation of financial data in a business.

  Investment and coupon bonds problem

GRP Company has $500,000 in a bank account paying 0.35 percent yearly interest. As an option to leaving the money in account, the firm is planning investing the entire amount for 5-years.

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