Price minus selling cost is dollar gross margin

Assignment Help Financial Management
Reference no: EM131084260

1) The retail price for a wrinkle-reducing injection is $550. Retailers buy directly from the manufacturer, who has a margin of 80 percent on their product. If the retailer margin is 40 percent, what is the manufacturer selling price to the retailer? What is the manufacturer’s cost for the product? 2) For both the retailer and manufacturer, what is the dollar amount of gross margin (price minus selling cost is dollar gross margin)?

Reference no: EM131084260

Questions Cloud

The premium on call option on the market index : The premium on a call option on the market index with an exercise price of $50 is $1.30 when originally purchased. After 3 months the position is closed and the index spot price is $52. If interest rates are 0.75 % per month, what is the Call Profit?
Research to develop new computer game : Capital Budgeting Exercise 2 Your Company has spent $200,000 on research to develop a new computer game. The firm is planning to spend $300,000 on a machine to produce the new game. The firm has a tax rate of 35 percent, an opportunity cost of capita..
Should hatfield implement the plans : Repeat the analysis performed in the previous question but now assume that Hatfield is able to improve the following inputs: Reduce operating costs (excluding depreciation) to sales to 89.5% at a cost of $40 million. Should Hatfield implement the pla..
What is the effective cost of borrowing in case : Your firm has an average collection period of 23 days. Current practice is to factor all receivables immediately at a discount of 1.3 percent. What is the effective cost of borrowing in this case?
Price minus selling cost is dollar gross margin : The retail price for a wrinkle-reducing injection is $550. Retailers buy directly from the manufacturer, who has a margin of 80 percent on their product. If the retailer margin is 40 percent, what is the manufacturer selling price to the retailer?  w..
The constant-growth dividend discount model : Jand, Inc., currently pays a dividend of $1.58, which is expected to grow indefinitely at 4%. If the current value of Jand’s shares based on the constant-growth dividend discount model is $42.91, what is the required rate of return?
What is the stocks expected return and stocks beta : The market portfolio has an expected return of 9 percent with a 10 percent volatility. The risk-free rate is 4 percent. A stock has a 20 percent volatility and a correlation coefficient of minus 0.10 with the market. a. What is the stock’s beta? What..
What is intrinsic value of deployment specialists stock : Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 22% for two years and then at 5% thereafter. If the required return for Deployment Specialists is 11.0%, what is the intrinsic value of Deployment Specialists st..
Market prices adjust to positive earnings announcements : You want to test the speed with which stock market prices adjust to positive earnings announcements. Company A makes its earnings announcement on May 20 and company B on June 16. You collected for each company daily share price returns two days befor..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the yield to maturity on treasury strips

What is the yield to maturity on a Treasury STRIPS with 7 years to maturity and a quoted price of 77.859?

  Using equivalent uniform annual worth

A machine, with a first cost of $20,000, is expected to save $1,500 in the first year of operation and the savings should increase by $200 every year until (and including) the ninth year, thereafter the savings will decrease by $150 until (and includ..

  Invested in accounts receivable

Your firm has $45 million invested in accounts receivable, which is 90 days of net revenue. If this could be reduced to 50 days, what annual increase would your firm realize if the increase in cash could be invested at 7.5%?

  Calculate the real exchange rate

Consider the following data on USDMXN and price levels in the United States and Mexico. Calculate the real exchange rate at t=0.

  Pre-tax component cost of debt

Oriole Industries has $10 million in outstanding bonds that are selling for 99 percent of par value. The bonds pay an annual coupon of 9 percent and mature in 10 years. What is Oriole Industries' pre-tax component cost of debt?

  What is the net present value of a project with cash flows

What is the net present value of a project with the following cash flows if the discount rate is 15%?

  Process of performing financial analysis of a public

process of performing financial analysis of a public companygeneral component---no more than one paragraph describing

  Estimated cash flows for capital budgeting project

The NPV and IRR derived from estimated cash flows for a capital budgeting project are: a. essentially expected values or means b. likely to differ from the actual results of the project c. random variables with their own probability distributions d. ..

  Cash flows tend to be preffered at higher discount rates

When evaluating projects using internal rate of return a. the discount rate of magnitude of cash flows do not affect internal rate of return b. projects having higher early year cash flows tend to be preferred at lower discount rates c. projects havi..

  What is the value of the option to wait

Rosita's is considering a project that has been assigned a discount rate of 12 percent. If the firm starts the project today, it will incur an initial cost of $38,260 and will receive cash inflows of $18,320 a year for three years. If the firm wai..

  Call provision-subordinated debt and secured debt

Discuss what effect you would expect the following debt provisions to have on the yield that corporations must offer investors: funded (versus unfunded) debt, sinking fund, call provision, subordinated debt, secured debt.

  What is the interest tax shield

Fleury Co. has a 32 percent tax rate. Its total interest payment for the year just ended was $36.8 million. What is the interest tax shield?

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