User Account

All Pages

Compute fixed operating costs

Assignment Help Finance Basics
Reference no: EM1359277

Rodney Rogers, a recent business school graduate, plans to open a wholesale dairy products firm. The business will be completely financed with equity. Rogers expects first year sales to total $5,500,000. He desires to earn a target pretax profit of $1,000,000 during his first year of operation. Variable costs are 40 percent of sales.

a. How large can Rogers' fixed operating costs be if he is to meet his profit target?

b. What is Rogers' breakeven level of sales at the level of fixed operating costs determined in (a)?

 

Reference no: EM1359277

Questions Cloud

How much work was done by the lift on the automobile : How much work was done by the lift on the automobile.
Explain government interaction has a major impact : Explain Government interaction has a major impact on businesses and personal lives. Identify two government policies that influence our business environment
Basics of intervention strategies : Briefly describe at least two intervention strategies that might be used with this population, given those needs. Provide specific examples and explain how each intervention might be applied.
What is the magnitude of the maximum magnetic force : Two point charges and are held in place 4.50 apart. Another point charge -2.5 of mass 6 is initially located 3.00 from each of these charges and released from rest. You observe that the initial acceleration of -2.50 is 354 upward, parallel to the ..
Compute fixed operating costs : Rodney Rogers, a recent business school graduate, plans to open a wholesale dairy products firm. The business will be completely financed with equity.
Write program to accept six pairs of values from user : Write a program that accepts six(6) pairs of values from the user and then calculates and stores the difference of each pair of values in an array.
Relapse prevention models : Provide a comparison (similarities and differences) of two relapse prevention models. Then, explain how each model might be applied in a substance abuse counseling setting, using specific examples.
Calculate the ebit-eps indifference point : Emco Products has a present capital structure consisting only of common stock. The corporation is considering a major expansion. At this time, the company is undecided between the following two financial plans
Explain the farm is expected to produce revenue : Explain The farm is expected to produce revenue of $2.02 million each year and annual cash flow from operations equals $1.87 million.

Reviews

Write a Review

Finance Basics Questions & Answers

  Risk as well as return computation using capital asset

Risk as well as return computation using capital asset pricing model and If the market risk premium is 8%, the risk-free rate of return is

  What factors should determine dividend policy

What are the different types of dividend policies that an organization might adopt? What factors should determine its dividend policy?

  Foreign transaction-foreign currency transaction

Differentiate between a foreign transaction and a foreign currency transaction. Please give an example of each.

  Describe capital budgeting involves calculation

Describe Capital budgeting involves calculation of net present value of Avanti, Inc. is considering investing in a new telephone product.

  Relationship between inflation and interest rates

Find out the relationship between inflation and interest rates? How does the relationship affect asset prices? How does the unemployment rate affect interest rates?

  Determining the portfolio-s expected returns

Portfolio is invested 37.7% in Stock A, 26.6% in Stock B, and remainder in Stock C. Expected returns are 19%, 26.1%, and 11.8% respectively. Determine the portfolio's expected returns?

  True and false questions on initial public offering

True and false questions on initial public offering and other forms of capital and The proceeds of the A123 IPO were used to repay bank loans and buy back outstanding debt

  Busines analysis of possible sprint-t-mobile merger

This assignment address the possible benefit of to shareholders of T-Mobile and Sprint in a possible merger of the two companies.

  Calculate future value of the investment

A grandmother want a plan to finance her new grandchild's college education. She has $62,000 to invest. Search the internet & locate a long-range investment CD, Savings Bond, plan, etc, for the grandmother.

  Problem on riskless security and advantage of debt financing

The semi-annual interest payments that company bonds in the U.S. typically pay are conventionally referred to as

  Determine dividend payout ratio

Earnings per share of common stock will immediately increase as a result of, An increase in the market price of a company's common stock will immediately affect its:

  Basic concepts in finance-solution set

You currently receive $10,000 per year on annuity contract. It will expire in eight years. Someone wants to purchase the contract from you. If you can earn 12% on other investments of the same quality and risk, how much would you be willing to sel..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd