Reference no: EM131021918
Maxine Leo, vice president of marketing for 3D-vious Printers, Inc., must decide whether to introduce a mid-priced version of the firm’s 3D printer product line—the 3D X. The 3D X would sell for $3,900 with unit variable costs of $1,800. Projections made by an independent marketing research firm indicate that the 3D X would achieve a sales volume of 500,000 units next year, in its first year of commercialization. One-half of the first year’s volume would come from the competitors’ 3D products and general market growth. However, a consumer research study indicates that 30% of the 3D X sales volume would come from the higher priced 3D Omega product, which sells for $5,900 (with unit variable costs of $2,200). Another 20% of the 3D X sales volume would come from the economy-priced 3D Alpha product, priced at $2,500 (with unit variable costs of $1,200). The 3D Omega sales volume is expected to be 400,000 units next year, and the 3D Alpha is expected to achieve a 600,000 unit sales level. The fixed costs of launching the 3D X have been forecast to be $2 million during the first year of commercialization. Should Maxine add the 3D X model to the product line? Why do you feel this way? The total margin contributions should come to 1,050,000,000 for 3DX. 130,000,000 for 3D alpha. And 555,000,000 for 3D Omega
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Manufactures no-inhale cigarettes
: Boomer Products, Inc. manufactures “no-inhale” cigarettes. As their target customers age and pass on, sales of the product are expected to decline. Thus, demographics suggest that earnings and dividends will decline at a rate of 5% (-5%) annually for..
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What is the present value of an investment
: What is the present value of an investment that will pay you $324 at the end of the 1 year, $522 at the end of the 3, and $573 at the end of the 7 year. Assume the discount rate is 7%.
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Depreciation of the machinery is in proportion to the mines
: Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined.
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Degree of financial leverage under each of the three plans
: The Lopez-Portillo Company has $10.4 million in assets, 60 percent financed by debt, and 40 percent financed by common stock. The interest rate on the debt is 11 percent and the par value of the stock is $10 per share. compute earnings per share (EPS..
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Mid-priced version of the firms three d printer product line
: Maxine Leo, vice president of marketing for 3D-vious Printers, Inc., must decide whether to introduce a mid-priced version of the firm’s 3D printer product line—the 3D X. The 3D X would sell for $3,900 with unit variable costs of $1,800. Should Maxin..
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Delivery truck costs are recorded in the trucks account
: Jan.1 Paid $23,515 cash plus $1,785 in sales tax for a new delivery truck estimated to have a five-year life and a $2,300 salvage value. Delivery truck costs are recorded in the Trucks account.
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Invest in one of two different automated clicker cutters
: Fantastic Footwear can invest in one of two different automated clicker cutters, A and B. The first cutter, A, has a $ 100 000 first cost. Another similar cutter with many extra features, B, has a $ 400 000 first cost. Cutter A will save $ 50 000 per..
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Dollar-equivalent investment
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Which capital investment technique does the discussion
: Which capital investment technique does the discussion in the textbook favor? Why? Do you agree with this assessment? Assume your firm has multiple investments to consider each with differing risk levels. How can differing risk levels be incorporated..
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