Calculate the quantity of output produced

Assignment Help Finance Basics
Reference no: EM1356802

A firm has a degree of combined leverage of 1.25. Price per unit is $15 and variable cost per unit is $5. Interest expense is $10,000 and fixed costs are $190,000. Calculate the quantity of output produced.

a. 100,000 units
b. 120,500 units
c. 150,000 units
d. 200,000 units

 

Reference no: EM1356802

Questions Cloud

Calculate the average monthly return : The given return figures were computed using closing prices obtained from Yahoo Finance website for Harley Davidson. Calculate the average monthly return for the company and the standard deviation for these monthly returns.
Examine two or three differences between design capacity : Examine two or three differences between design capacity and effective capacity
Strategic change streaming - dvd : Summarize the strategic change that Netflix made when they changed how customers rent and pay for DVDs vs. Streaming. Explain what changes did Netflix make, and what was the result?
Explain social class differences influence each store''s : one catering to upper-middle class consumers and the other to lower class consumers. How do social class differences influence each store's
Calculate the quantity of output produced : A company has a degree of combined leverage of 1.25. Price per unit is $15 and variable cost per unit is $5. Interest costs is $10,000 and fixed costs are $190,000.
Compute nominal annual interest rate : Suppose you agree to make 24 deposits of $500 at the beginning of each month into a bank account. At the end of 24th month, you will have $13,000 in your account.
Determine the nominal cost of interest : Boeing Corporation buys on 2/10, net thirty days. Determine the nominal cost of interest if Boeing does not take advantage of the trade discount offered? Suppose a 360 day year.
Importance of beta as risk measure for single security : If the historical standard deviation of common stocks has been 20.3 percent and small company stocks 34.6%, explain how the S & P Composite Index could have a standard deviation of 20.3 percent?
How many revolutions per minute does the system make : The 4{rm kg} block in the figure is attached to a vertical rod by means of two strings. When the system rotates about the axis of the rod, the strings are extended and the tension in the upper string is 83N.

Reviews

Write a Review

Finance Basics Questions & Answers

  Estimate the continuation value

Estimate the continuation value using the market/book ratio.

  Compound and simple interest-pv-annuities

Illustrate compound interest formulas, using them to find future values and present values of the dollar; describe annuities and find out the future value or present value of annuity

  The machine time constraint

A corporation produces three products. Information concerning the selling prices and unit costs of the three products appear below:

  Objective type questions on investment

Objective type questions on investment and When interest rates are high and lenders may not want to make loans because of

  Objective type problems on capital structure

Objective type problems on capital structure and cost of capital and Which project should be accepted and why

  Find intrinsic value of the warrant

The People Power Corporation currently has a common stock selling for $15 per share. Warrants are also available. Three warrants entitle the holder to buy one share of common stock for $9.

  Discuss unsuccessful negotiation situation

Describe unsuccessful negotiation situation and suggest actions could have been taken to enhance future like negotiations by applying best practices in negotiations.

  Investment analysis through incremental analysis

Investment Analysis through Incremental Analysis and compute the incremental net income of the investment for each year

  Importance of operational risk

Explain briefly why operational risk is important. Though the cost of implementing a new operational risk management system is expensive, determine why it could also improve the efficiency.

  Tvm - retirement planning

You're planning your retirement and you come to the conclusion which you need to have saved $1,250,000 in 30 years. How much do you have to put in your account at the end of each year to reach your retirement goal?

  Values and statement of cash flows

What is the present value of investment in equipment if it is expected to provide annual savings of $10,000 for 10 years and to have resale value of $25,000 at the end of that period.

  Concept of economic risk

How do you describe the concept of economic risk in context of global business?

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