Company expect to cover in costs in order to earn profit

Assignment Help Financial Management
Reference no: EM13951413

A company selling beseball gloves has fixed costs of $1800, and it costs an additional $26.51 to produce each glove. If the company charges a price of $168.95 per glove, how much should the company expect to cover in costs in order to earn a profit of $39,000?

The company should expect to cover $ in costs.

Reference no: EM13951413

Questions Cloud

The bonds are selling at par value-what is cost of equity : Country Markets has an unlevered cost of capital of 12 percent, a tax rate of 38 percent, and expected earnings before interest and taxes of $15,700. The company has $11,000 in bonds outstanding that have a 6 percent coupon and pay interest annually...
What will the stock price per share be after the stock : Tucker's National Distributing has a current market value of equity of $10,665. Currently, the firm has excess cash of $640, total assets of$22,400, net income of $3,210, and 500 shares of stock outstanding. Tucker's is going to use all of its excess..
What is the firms weighted average cost of capital : Phillips Equipment has 80,000 bonds outstanding that are selling at par. Bonds with similar characteristics are yielding 6.75 percent. The company also has 750,000 shares of 7 percent preferred stock and 2.5 million shares of common stock outstanding..
Project requires an initial investment in equipment : You are currently evaluating a new project for your company. The project requires an initial investment in equipment of RM90,000 and an investment in working capital of RM10,000 at the beginning (t = 0).  The corporate tax rate is 30% and the cost of..
Company expect to cover in costs in order to earn profit : A company selling beseball gloves has fixed costs of $1800, and it costs an additional $26.51 to produce each glove. If the company charges a price of $168.95 per glove, how much should the company expect to cover in costs in order to earn a profit o..
Customers is delinquent on his accounts payable balance : One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $510 per month. You will charge .91 percent per month interest on the overdue balance. Required: If the current balance is $14,730,..
Calculate the depreciation charge and book value for years : Earth-moving equipment having a first cost of $82,000 is expected to have a life of 18 years. The salvage value at the time is expected to be $15,000. Calculate the depreciation charge and book value for years 2, 7, 12, and 18 using: The straight-lin..
Describe the most challenging obstacle you had to overcome : Describe the most challenging obstacle you've had to overcome. Discuss its impact on your life. What have you learned from the experience? How has overcoming this obstacle shaped who you are today?
Complete a critical reflection about leadership theory : Complete a critical reflection about leadership theory and attributes you have observed in clinical practice. The aim of the task is for you to critically reflect on the leadership style observed and to make some critical assumptions and attribute..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the basic relationship between risk and return

What is the basic relationship between risk and return and how is this reflected in the value of the firm’s stock? The cost of debt? What are the primary factors that should be considered when establishing a firm’s capital structure? What are the pri..

  Discuss many different financial ratios

Finance text books normally discuss many different financial ratios. Such as liquidity ratios and the rest. What is their purpose?  Can any ratio or combination of ratios predict a company's long-term viability?  Can you think of an example whereby o..

  What is the pre-tax cost of debt if the tax rate

A firm has a debt issue outstanding with 7 years to maturity that is quoted at 108% of face value. The issue makes semi-annual payments and has an embedded cost of 6.1% annually. What is the pre-tax cost of debt if the tax rate is 38%? What is the af..

  What is your incremental cash flow from selling the machine

You purchased a machine for $1.06 million three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is 35%. If you sell the machine today (after three years of depreciation) for $779,000, what is y..

  Why is developing a financial plan an important part of the

nbsp1. library research - provide 2 companies that have differentiated between cash and profits. how did the approach

  Including the final quarter when the principal falls due

If interest rates were 4 percent, how much would you give today for a loan with a $100,000 balloon principal payment due in a year and that will pay $16,000 in interest at the end of each quarter, including the final quarter when the principal falls ..

  Finance the construction of a new plant in montreal

You are the vice president of International InfoXchange, headquartered in Chicago. All shareholders of the firm live in the United States. Earlier this month, you obtained a loan of 5 million Canadian dollars from a bank in Toronto to finance the con..

  Considering two independent projects

You are considering two independent (not mutually exclusive) projects both of which have been assigned a discount rate of 15%. Based on the profitability index, what is your recommendation concerning these projects?

  Financial ratio becomes more important to analyze

At the end of the growth phase the following financial ratio becomes more important to analyze

  Explain collateral and conditions

The five Cs of credit are character, capacity, capital, collateral, and conditions. Review each of the four items mentioned in the article and then state which one of the Cs each would represent.

  You are a data analyst with john and sons company the

you are a data analyst with john and sons company. the company has a large number of manufacturing plants in the united

  Intrinsic value of deployment specialists stock

Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 20% for two years and then at 3% thereafter. If the required return for Deployment Specialists is 10.0%, what is the intrinsic value of Deployment Specialists st..

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