Incremental revenue required from the campaign

Assignment Help Accounting Basics
Reference no: EM131030091

1. Dyson is introducing a new vaccuum cleaner to the market. The COGS to produce one of these vaccuum cleaners are 50$. SG&A expenses associated with a single machine are 10$. Production capacity to make 500000 vaccuum cleaners per year cost 50$million(i.e capital expenditures); such capacity is estimated to have a 10 year life.

a. At what price should the company sell the product if it wishes to have an EBIT margin of 20%

b. at what price should it sell the product if it wishes to have a ROIBT of 25%

2. A korean auto manufacturer is considering a 1million holiday advertising campaign for its cars that have an average contribution margin of 45%. The comany wants to realize a return on marketing investment(ROMI) of at least 10%. what's the minimum of incremental revenue required from the campaign?

3. Plastic film sell their film by are, but buy the plastic raw material (polythelene) by mass. A plastic manufacturer has developed a grade pf PE that is 30% of stronger than the current film grade product and doesn't cost any more to make. Thus film produces can make a film that has the same strength is 3% thinner. if the current grade of PE is priced to the customer at 1$ kg. how should the manufacturer price the new grade such that it captures 40% of the additional value.

4. Company and its competitors are operating at full capacity. Customer A has just renewed its contract for another 5 years at the following terms and conditions price =4$kg, standard delivery and service, payment terms=30days. You are renegotiating customer's B contract and you want to receive the same poacket margin as for customer . Customer B is quite demanding, it requires extra service worth 0.10$ kg and can only pay in 60 days. Assuming that your company's cost of capital is 12%. What price should you target for customer B.

5. A company invest 5 million, The variable margin for revenues associated with this investment will be 50%. Total fixed cost including SG&A are 700000$ year. Assume a 10 year useful life for the fixed assets, a 35% tax rate and that net working capital id 20% of revenues. What is ROI for each of the first 3years of operation. b, What's the net present value of the total annual cash flows at 10%discount rate at the end of 4years operation a company invest 5 million( assume in year 0) and obtains revenues as follow year 1=1miilion, year=2 miilion, year 3=3 milion, year 4=4 million, year 5 to 15=5million

Reference no: EM131030091

Questions Cloud

Calculate the order of delay in the above channel : Illustrate the satellite communication system and calculate the order of delay in the above channel
What steps might occur going forward assuming the problem : What should your next step be, assuming that Agent Mulder is the program manager and not the contracting officer? After talking to Contracting Officer Scully, it appears that she agrees with Program Manager Mulder.
Describe the unified modeling language : a program that builds physical models.
How does research design differ from research methods : Describe the steps in the research design process. Be sure to use specific terminology related to research design and include a discussion on the steps to effective research design.
Incremental revenue required from the campaign : A korean auto manufacturer is considering a 1million holiday advertising campaign for its cars that have an average contribution margin of 45%. The comany wants to realize a return on marketing investment(ROMI) of at least 10%. what's the minimum ..
Design microcontroller-based string matching detector : Draw a block diagram how you would design this microcontroller-based string matching detector. Which peripherals would you be using? What considerations would you take into account?
Good reasons to use an object-oriented language : Which of the following are good reasons to use an object-oriented language?
Write essay that addresses the issues that qatar faces today : Write an essay that addresses one of the issues that Qatar faces today. You may discuss any social, familial, or cultural issue that is currently relevant to Qatar.
Option on jupiter stock with exercise price : A call option on Jupiter Motors stock with an exercise price of $80 and one-year expiration is selling at $7. A put option on Jupiter stock with an exercise price of $80 and one-year expiration is selling at $5.0.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the amount of income tax payable

Operating income/(loss) and tax rates for Lombard Corporation for 2012 through 2015 were as follows: 2012: $150,000, 30%; 2013: $250,000, 35%; 2014: ($500,000), 35%; 2015: $700,000, 40%. Assuming that Lombard opts to carryback its 2014 NOL, what i..

  In a year that leonard had agi of 100000 he donated 250000

in a year that leonard had agi of 100000 he donated 250000 worth of stock to indiana university where he earned his

  If the required rate of return is 10 percent and robb

the robb computer corporation is trying to choose between the following two mutually exclusive design projects year

  Bobby hooks, licensed master plumber

Bobby Hooks, licensed master plumber, had the following transactions and events during his first month of business. Prepare journal entries to record them.

  Distribution of the resources for the city

During the year, $ 500,000 was collected in sales taxes. Entries to record the collection and distribution of the resources for the city are recorded in which of the following funds?

  Over the next two years william continued selling inventory

over the next two years william continued selling inventory to roberts. assume that any items in intercompany inventory

  All assets are depreciated by the straight-line method

jerry grant the new controller of blackburn company has reviewed the expected useful lives and salvage values of

  Actual rate of pay for direct labor

The standard number of hours that should have been worked for the output attained is 10,000 direct labor hours and the actual number of direct labor hours worked was 10,500. If the direct labor price variance was $10,500 unfavorable, and the stand..

  Grace herron has just approached a venture capitalist for

grace herron has just approached a venture capitalist for financing for her new business venture the development of a

  Preparing the company income statement

Charlie Brown, controller for the Kelly Corporation, is preparing the company's income statement at year-end. He notes that the company lost a considerable sum on the sale of some equipment it had decided to replace.

  During january its first month of operations knox company

during january its first month of operations knox company accumulated the following manufacturing costs raw materials

  Potential limitation of financial statement analysis

Question 1. Which of the following is a potential limitation of financial statement analysis?

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