Distributed to large retailers

Assignment Help Finance Basics
Reference no: EM13286612

Video Concepts, Inc.(VCI) manufactures a line of DVD recorders (DVDs) that are distributed to large retailers. The line consists of three models of DVDs. The following data are available regarding the models: Model DVD Selling Price Variable Cost Demand/Year Per unit Per Unit (units) Model LX1 $175 $100 2000 Model LX2 $250 $125 1000 Model LX3 $300 $140 500 VCI is considering the addition of a fourth model to its line of DVDs. This model would be sold to retailers for $375. The variable cost of this unit is $225. The demand for the new Model LX4 is estimated to be 300 units per year, Sixty percent of these units sales of the new model is expected to come from other models already being manufactured by VCI (10 percent from Model LX1, 30 percent from Model LX2 and 60 percent from Model LX3. Vci will incur a fixed cost of 20,000 to add new model to the line. Based on the data do you think they should add a new Model LX4 to the lines or vcr's and if so why?

Reference no: EM13286612

Questions Cloud

Explain ea in the absence of conversions : In temperature dependance of reaction rates, if you use R=8.314 J/molxK, what should the units be for Ea in the absence of conversions
Compute the vertical components of the launch velocity : In a football game a kicker attempts a field goal. The ball remains in contact with the kicker's foot for 0.0398 s, compute the  vertical components of the launch velocity
How man output bits will the decoder produce : To play music, these types of players have a decoder circuit that can decode the binary representation of the piece of music to be played. The electronic signals corresponding to the notes that are to be 'played' can then be transmitted to a speak..
Explain which method is more efficient of extractions : When performing extractions it is often better to do multiple extractions rather than one large volume extraction. suppose you have 100mg of a sample dissolved in 0.6ml of water.
Distributed to large retailers : Video Concepts, Inc.(VCI) manufactures a line of DVD recorders (DVDs) that are distributed to large retailers
Estimate the magnitude of the charge q and external force : When a cloud passes over a certain spot on the surface of the earth a vertical electric field of E = 100 V/m is recorded there. The bottom of the cloud is a height d = 300m above the earth and the top of the cloud is 600m above the ground.
Find the electric potential energy of this group : Four identical charges (+2.2 ?C each) are brought from infinity and fixed to a straight line. Determine the electric potential energy of this group
What is the total current that passes througn this closed : The value of F B. ds along closed path in a magnetic field is given by 6.28 X 10 T.m. What is the total current that passes througn this closed path?
Explain benzoic acid and dissolve it in 1ml of diethyl ether : benzoic acid and dissolve it in 1ml of diethyl ether. this is then extracted with 1 ml of water. the ether is removed, dried with sodium sulfate and ether evaporated yielding 30 mg of benzoic acid. what is the kp value for the ether water system.

Reviews

Write a Review

Finance Basics Questions & Answers

  What will the stock price be in 15 years

Investors require a return of 11 percent on the company's stock. What is the current stock price? What will the stock price be in three years? What will the stock price be in 15 years?

  What is the relevant cost of new preferred stock

Investment bankers have advised General Bill that flotation costs on the new preferred issue would be 5% of the selling price. The General's marginal tax rate is 30%. What is the relevant cost of new preferred stock?

  What is the present value of cash flow stream

What is the present (Year 0) value of cash flow stream if the opportunity cost rate is 10 percent?

  Write a policy brief that explains the choice

Write a policy brief that explains the choice regarding Medicaid expansion that your state faces following the passage of the ACA and the Supreme Court decision- idea that residents of states that are not expanding will be paying increased federal ..

  Lockbox system to reduce collection time

It takes a corporation about six days to receive and deposit checks from customers management is planning a lockbox system to reduce collection time.

  Determine generally accepted accounting principles

Determine generally accepted accounting principles and who currently develops and issues GAAP explain the purpose of generally accepted accounting principles.

  Gold standard and foreign exchange markets summary

You've been asked by the local college to write down a lecture that explains the gold standard and addresses the functions of the world's major foreign exchange markets. Write down a summary detailing the functions of world's major foreign currenc..

  What are some differences in the analysis for a replacement

What are some differences in the analysis for a replacement project versus that for a new expansion project?

  What is the present value of the payments

Suppose you are going to receive $13,100 per year for six years. The appropriate interest rate is 8.0 percent.

  Haw many shares are in the treasury

A company whose charter authorize 10 million shares, has sold 6 million to the public. Of these, 5 million are in the hands of investors today.

  Discuss two factors that may affect a person''s credit score

Discuss two factors that may affect a person's credit score and apply the notion of moral hazard to your response.

  What is the present value of these cash returns

At a 9% interest rate, what is the present value of these cash returns?

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