What is break-even point in dollars

Assignment Help Financial Management
Reference no: EM131338817

Walls Company has budgeted sales of $120,000 based on 80,000 units. The margin of safety is $1,000. What is the break-even point in dollars?

A. 81,000

B. 119,000

C. 120,000

D. 121,000

Reference no: EM131338817

Questions Cloud

Describe the steps in an implementation plan : Describe the steps in an implementation plan.Identify possible project issues.Describe at least three methods to evaluate project success.Predict future facility trends and how you can proactively address those trends or how you might handle them whe..
The growth rate in dividends for suncor energy : According to the March 16, 2007 issue of The Value Line Investment Survey, the growth rate in dividends for Suncor Energy, Inc for the next five years is expected to be 7 percent. Suppose Suncor Energy meets this growth rate in dividends for the next..
Explain how diversification can reduce risk of a portfolio : Explain how diversification can reduce the risk of a portfolio of assets to below the weighted average of the risk of the individual assets.
Typical firm and industry supply and demand : Provide supplementary calculations anda pair of fully labeled diagrams showing The Typical Firm and Industry Supply and Demand to analyze the impact of this tax.
What is break-even point in dollars : Walls Company has budgeted sales of $120,000 based on 80,000 units. The margin of safety is $1,000. What is the break-even point in dollars?
Discuss the sexual harassment and gender discrimination : Employment discrimination law is about prohibiting or encouraging behaviors in the workplace regarding differences in people. It has evolved over the years significantly, and the passage of Title VII, the US. Civil Rights Act, has made more change..
Distinguish between unsystematic and systematic risk : Distinguish between unsystematic and systematic risk. Under what circumstances are investors likely to ignore the unsystematic risk characteristics of a security?
What is nuevas net income if it elects fifo : What is Nueva's net income if it elects FIFO?  Suppose that Badger's 2018 ending inventory, valued at year-end costs, was $167,500 and that the relative cost index for this inventory in 2018 was 1.25.
What is the equity risk premium and required rate of return : Calculate for Best Inc., assuming that (1) investors expect a 2.5% rate of inflation in the future, (2) the real risk-free rate is 1.5%, (3) the market risk premium is 3.0%, (4) the firm has a beta of 1.50, and (5) its realized rate of return has ave..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the terminal or horizon value

Maverick Milling Co. just paid a dividend of $1.00 to its shareholders. The firm is expecting high growth over the next few years and is projecting the dividend to grow by 15% in the first year, 20% in the second year, and $15% in the third year, bef..

  Explain and differentiate between business organizations

Explain and differentiate between business organizations.- What form of business organization will give Stamp the most freedom to manage the business as she wishes?

  Motorist pay for fuel efficient six speed transmission

A new six speed automatic transmission for automobiles offers an estimated 4% improvement in fuel economy compared to traditional four speed transmissions. If a four speed transmission car averages 30 MPG and gasoline costs $4.00 per gallon, how much..

  What is the standard deviation of these returns

Over the past six years, a stock had annual returns of 14 percent, -3 percent, 8 percent, 21 percent, -16 percent, and 4 percent, respectively. What is the standard deviation of these returns? 15.08 percent 11.27 percent 14.40 percent 13.59 percent 1..

  Gain or loss on sale of plant assets

All of the following components are shown in the income statement net of applicable income taxes EXCEPT (a) gain or loss on sale of plant assets. (b) extraordinary gain or loss. (c)cumulative effect of a change in accounting principle. (d) discontinu..

  Analysis showing the pros and cons of each decision

Eric and Tammy feel like they will live in their home forever. They are considering refinancing their home. Eric and Tammy were told by a mortgage broker that they would qualify for a 3.8% rate on a 15 year or 4% on a 30-year mortgage. Provide an ana..

  Calculate the effective financing rate for marcus

Marcus, Inc. a U. S. company takes our a 1-year loan in Germany. The U. S. 1-year interest rate is 5%, and the German 1-year interest rate is 6%. The spot rate of the euro is $1.33 and the 1-year forward rate is $1.29. Calculate the effective financi..

  What is the effective annual interest rate on line of credit

In exchange for a $400 million fixed commitment line of credit, your firm has agreed to do the following: Pay 1.87 percent per quarter on any funds actually borrowed. Maintain a 1 percent compensating balance on any funds actually borrowed. what is t..

  Changes in price of new clubs and quantity of new clubs sold

McGilla Golf has decided to sell a new line of golf clubs and would like to know the sensitivity of NPV to changes in the price of the new clubs and the quantity of new clubs sold. The clubs will sell for $800 per set and have a variable cost of $400..

  Implemented to avoid liability for potential

As noted in the EEOC tutorial (located in this week's lecture), candidates for the Director of HR position of the newly merged company, ZAB, are being asked to prepare a presentation about Title VII, as it pertains specifically to disparate impact an..

  What is expected total return and what is dividend yield

Consider Ford stock (F) with a current price of $20 per share and a standard deviation of returns of 15%. An investor expects to sell Ford stock in one year at $21 per share and expects the firm to pay a dividend of $1 per share at the end of the yea..

  Effective versus nominal interest rate

Universal Bank pays 4% interest, compounded annually, on time deposits. Regional Bank pays 3%, compounded quarterly. Based on effective interest rates, in which bank would you prefer to deposit your money? You are indifferent between the banks and yo..

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