The contribution margin per unit is equal

Assignment Help Financial Management
Reference no: EM13885285

The contribution margin per unit is equal to the:

a. Sales price per unit minus the total costs per unit.

b. Variable cost per unit minus the fixed cost per unit.

c. Sales price per unit minus the variable cost per unit.

d. Pretax profit per unit.

e. Aftertax profit per unit.

Reference no: EM13885285

Questions Cloud

What is the equivalent annual cost of each light bulb : Compact fluorescent lamps (CFLs) have become more popular in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $0.43 and lasts 1,000 hours.  If you require a 10 percent return and use a light fixt..
What is the net income under the worst-case scenario : Wilson’s Market is reviewing a project with sales of 6,200 units plus or minus 2 percent at a sales price of $29 plus or minus 1 percent per unit. The expected variable cost per unit is $11 plus or minus 3 percent and the expected fixed costs are $87..
Calculate the eac for both conveyor belt systems : Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $204,000, has a four-year life, and requires $66,000 in pretax annual operating costs.  Calculate the EAC for both conveyor belt sy..
What was the true annualized return : You buy a stock for $20. After a year the price rises to $25 but falls back to $20 at the end of the second year. What was the average percentage return and what was the true annualized return?
The contribution margin per unit is equal : The contribution margin per unit is equal to the:
Expected to pay the dividends : Lohn Corporation is expected to pay the following dividends over the next four years: $20, $16, $15, and $8.50. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the stock is 1..
Approximate cost of giving up cash discount from supplier : Prairie Manufacturing has four possible suppliers, all of which offer different credit terms. Except for the differences in credit terms, their products and services are virtually identical. Calculate the approximate cost of giving up the cash discou..
Thinking of buying a craft emporium : You are thinking of buying a craft emporium, it is expected to generate cash flows of 30,000 per year in years 1 through 5, and $40,000 per year in 6 through 10. if the appropriate discount rate is 8 % , what amount are you willing to pay for the emp..
Free cash flow growth rate-current intrinsic stock price : This year, Huxley Building Supplies' free cash flow is $1.75 million. Its free cash flow growth rate is expected to be constant at 25% for 2 years, after which free cash flows are expected to grow at a rate of 6% forever. What is the best estimate of..

Reviews

Write a Review

Financial Management Questions & Answers

  Land conservation easement that allows agricultural

Assume you are a shareholder in a corporation that owns a parcel of real estate that is restricted by a land conservation easement that allows agricultural use only. The corporation rents the land to a farmer.

  Valuation of a constant growth stock

A stock is expected to pay a dividend of $3.00 the end of the year (that is, D1 = $3.00), and it should continue to grow at a constant rate of 4% a year. If its required return is 14%, what is the stock's expected price 1 year from today? Round your ..

  Calculate the tax effect from the sale of the existing asset

Truth Dance Company, Inc., a manufacturer of dance and exercise apparel, is considering replacing an existing piece of equipment with a more sophisticated machine. Calculate the book value of the existing asset being replaced. Calculate the tax effec..

  Indexed funds can produce higher returns than managed funds

Studies have shown that indexed funds can produce higher returns than managed funds; this is evidence in support of:

  Current exchange rate and impact the rating of a bond

Suppose the current exchange rate between German Mark and US dollar is M 1.5581 per $, and the 90 days forward rate between these currencies is M 1.5493 per $. Which of the followings would impact the rating of a bond?

  Capital situation-preferred stock-debt and equity

Based on the information below, calculate the weighted average cost of capital. Great Corporation has the following capital situation. Debt: One thousand bonds were issued five years ago at a coupon rate of 10%. They had 25-year terms and $1,000 face..

  Find the present value-annual discount interest rate

Find the present value of $7,000 to be received one year from now assuming a 3 percent annual discount interest rate. Also calculate the present value if the $7,000 is received after two years.

  What is expected after-tax cost of this debt issue

Gargoyle Unlimited is planning to issue a zero coupon bond to fund a project that will yield its first positive cash flow in three years. That cash flow will be sufficient to pay off the entire debt issue. The bond's par value will be $1,000, it will..

  What is the present value of the cost of keeping

A machine was purchased 5 years ago at the cost of $25000. It can be sold now for $6000. If the machine is kept for 5 more years, it is anticipated that the machine can be sold for $1000. a.) At a cost of capital of 12%, what is the present value of ..

  Different policies on the payment of dividends

Different businesses have very different policies on the payment of dividends and what that communicates to stockholders. Basically there are two ways to reward stockholders: 1) pay them via dividends and 2) pay them with capital appreciation of thei..

  A stock option is option to buy the shares of company

A Stock Option is an option to buy the shares of a company before certain time (maturity T) at a certain price (strike price K). Let St denote the company’s share price at time t. How is that related to “stock dilution,” that is, the result of new sh..

  Explain process for calculating beta and the inputs

As of early September 2010, Wal-Mart's (WMT) beta is 0.33 and Target Stores (TGT) beta is 1.02. Discuss the meaning of these two betas, analytically, by briefly setting forth the process for calculating beta and the inputs to the calculations wher..

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