What are the total variable costs of the project

Assignment Help Financial Management
Reference no: EM13928084

A firm is reviewing a project with labor cost of $6.20 per unit; raw materials cost of $22.45 a unit, and fixed costs of $11,000 a month. Sales are projected at 8,200 units over the 3-month life of the project. What are the total variable costs of the project?

$245,930

$234,930

$122,965

$184,090

Reference no: EM13928084

Questions Cloud

Define low risk tolerance and describe two investment option : Jaia wants to begin investing a portion of her income. She takes an online investment options quiz, which concludes that she has a low risk tolerance. Define low risk tolerance and describe two investment options that would suit Jaia's risk tolera..
Characteristics of servant leadership : Laub argues that a servant organization "is one in which the characteristics of servant leadership are displayed through the organizational culture and practiced by the leadership and the workforce"
How much does your payment go down in the better option : You buy a house for $150,000 using a 30-year mortgage at 4.5% interest to be paid monthly.1. What is your payment? 3. Your generous parents agree to give you $10,000 toward your home 4.They offer either to make a down payment (lessening the principal..
How much money would be in a savings count : Calculate the present worth in year 0 of the series of disbursements and determine the value in year 8 that is equivalent to the cash flow stated.
What are the total variable costs of the project : A firm is reviewing a project with labor cost of $6.20 per unit; raw materials cost of $22.45 a unit, and fixed costs of $11,000 a month. Sales are projected at 8,200 units over the 3-month life of the project. What are the total variable costs of th..
What is the cost of external common equity : Jiffy Co. expects to pay a dividend of $1.00 per share in one year. The current price of Jiffy common stock is $45 per share. Flotation costs are $2.50 per share when Jiffy issues new stock. Jiffy Co.’s long-term growth in dividends is projected to b..
How can servant leadership transform boards : How can servant leadership transform boards and be a transformational force in society
The amount needed to keep and operate your business : Solve each situation separately, where P = principal; r = interest rate; t = time in years; I = interest and future value FV = You want to start a bakery business. For this, you will need a capital of $ 75,000 to start operating. If you have to opera..
What role of followership in supporting servant leaders : What is the role of followership in supporting servant leaders

Reviews

Write a Review

Financial Management Questions & Answers

  After tax cost of debt

Lawler's is considering a new project. The company has a debt-equity ratio of 0.72. The company's cost of equity is 15.1 percent, and the after tax cost of debt is 7.2 percent. The firm feels that the project is riskier than the company as a whole an..

  Long term or short term credit riskier

COLLAPSE From the standpoint of the borrower; is long term or short term credit riskier? Would it ever make sense to borrow on a short term basis if short term rates were above long term rates?

  How firms estimate their cost of capital

How firms estimate their cost of capital: The WACC for a firm is 13.00 percent. You know that the firm's cost of debt capital is 10 percent and the cost of equity capital is 20%. What proportion of the firm is financed with debt?

  How much gain did they recognize on sale

How much gain did they recognize on sale of their old residence? On February 26, 2015, Mr. and Mrs. Nixon sold their new residence for a $48,000 realized gain and moved into a nearby house with a swimming pool. How much gain did they recognize? How m..

  Which project is financially acceptable

Assume that you are the chief financial officer at Porter Memorial Hospital. The CEO has asked you to analyze two proposed capital investments – Project X and project Y.  Calculate each project’s payback, NPV and IRR Insert your response here. Which ..

  Both offering certificates of deposit yielding

You are saving to buy a $191,000 house. There are two competing banks in your area, both offering certificates of deposit yielding 7.6 percent. How long will it take your initial $108,000 investments to reach th edesired level at First Bank, which pa..

  What is the earnings per share for the company

Assume a stock selling for $45.01 has a dividend yield of 2.1 percent and a PE ratio of 20.4. What is the earnings per share (EPS) for the company? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

  Exact expected real risk premiums on the portfolio

If your portfolio is invested 35 percent each in A and B and 30 percent in C, what is the portfolio expected return? What is the standard deviation? What are the approximate and exact expected real risk premiums on the portfolio?

  Calculate the depreciation expense

You are given the following information for Calvani Pizza Co.: sales = $45,000; costs = $21,500; addition to retained earnings = $8,750; dividends paid = $1,000; interest expense = $5,500; tax rate = 35 percent. Calculate the depreciation expense.

  About the corporate valuation

Barrett Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Barrett does not pay any dividends, and it has no plans to pay dividends in the near future. What is an estimate of Bar..

  Time-to-maturity bonds due to coupon repayment uncertainty

Assume that interest rates exhibit an unexpected increase of 1%, in general, we would expect bond prices to         ________. However, we would likely see that the price change of ________ time-to-maturity bonds be greater         than the price chan..

  Which one of these would not be paid from free cash flow

Which one of these would not be paid from free cash flow? What is the highest marginal rate at which corporate income is taxed? Who pays taxes on earnings distributed as dividends?

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