Variable costs and fixed costs

Assignment Help Financial Management
Reference no: EM13731441

A company has $30 per unit in variable costs and $1,200,000 per year in fixed costs. Demand is estimated to be 110,000 units annually. What is the price if a mark-up of 40% on total cost is used to determine the price?

Reference no: EM13731441

Questions Cloud

Contribution margin ratio : Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $191,800, how many dollars of revenue must the company generate in order to reach the break-even point?
Mutually exclusive project occur : Mutually exclusive project occur when
Research tax freedom day. : Use your favourite search engine to research Tax Freedom Day. Then (a) explain the term Tax Freedom Day, (b) determine when Tax Freedom Day occurred in 2013, (c) predict the 2016 Tax Freedom Day and elaborate on why you chose that day, and (d) identi..
Cash break-even quantity and financial break-even quantity : A project has the following estimated data: price = $54 per unit; variable costs = $29.16 per unit; fixed costs = $6,100; required return = 16 percent; initial investment = $13,000; life = three years. Ignoring the effect of taxes, the accounting bre..
Variable costs and fixed costs : A company has $30 per unit in variable costs and $1,200,000 per year in fixed costs. Demand is estimated to be 110,000 units annually. What is the price if a mark-up of 40% on total cost is used to determine the price?
Stand-alone risk-diversifiable risk and market risk : Briefly but carefully distinguish between Stand-alone risk, diversifiable risk, and market risk. Of the three measures, which one is most relevant for stock valuation? Why?
What is the target variable cost per mouse : A company believes it can sell 5,100,000 of its proposed new optical mouse at a price of $11.00 each. There will be $8,000,000 in fixed costs associated with the mouse. If the company desires to make a profit $2,000,000 on the mouse, what is the targ..
What is the full selling price of a globe with mark-up : The Falling Snow Company is considering production of a lighted world globe that the company would price at a mark-up of 0.30 above full cost. Management estimates that the variable cost of the globe will be $68 per unit and fixed costs per year will..
Cause the value of a bond to increase : All of the following will cause the value of a bond to increase, other things held the same except:

Reviews

Write a Review

Financial Management Questions & Answers

  Loan amortization-amount of the annual payments

(Loan amortization) On December 31, Son-Nan Chen borrowed $110,000, agreeing to repay this sum in 24 equal end-of-year instalments and 18 percent interest on the decling balance. How large must the annual payments be?

  Assume a required rate of return on this bond

What is the value of a bond that has a par value of $1000 a coupon rate of 13.71 percent (paid annually) and that matures in 3 years? Assume a required rate of return on this bond is 6.83 percent

  Evaluating a project for a small manufacturing firm

You are evaluating a project for a small manufacturing firm. The firm has provided the following information: the initial cost of the project is $2,500 for equipment purchase; the CCA rate is 10 percent; tax rate is 25 percent; and the pre-tax cash f..

  Calculating annuity cash flows

If you put up $42,000 today in exchange for a 6.50 percent, 16-year annuity, what will the annual cash flow is? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

  Margaret plans to deposit

Margaret plans to deposit $500 on the first day of each of the next five years, beginning today. If she earns 4% compounded annually, how much will she have at the end of five years?

  Companies with rapidly growing levels of sales do not need

Companies with rapidly growing levels of sales do not need to worry about raising funds from outside the firm.  Do you agree or disagree with this statement?  Explain.

  1 a competitive hospital maintains current equipment and

1. a competitive hospital maintains current equipment and purchases new in order to stay current with the latest

  What is the bond''s nominal yield to call

Calculate the YTM and YTC under those conditions, what is your stock's intrinsic value and what is the WACC - What is the bond's nominal yield to call?

  Replacement costs for the items have increased

What would it cost an insurance company to replace a family’s personal property that originally cost $20,000? The replacement costs for the items have increased 20 percent

  Discuss the following topic how can persistently weak

discuss the following topic how can persistently weak currencies be stabilized?many countries suffer from chronical

  How and why does working capital affect the incremental cash

How and why does working capital affect the incremental cash flow estimation for a proposed large capital budgeting project?  Explain

  Year 1 and year 2 balance sheets of warnick co appear below

year 1 and year 2 balance sheets of warnick co. appear below together with an income statement for the latest

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