What is target variable cost per mouse

Assignment Help Financial Management
Reference no: EM131346351

A company believes it can sell 5,900,000 of its proposed new optical mouse at a price of $10.00 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 target variable cost per mouse?

Reference no: EM131346351

Questions Cloud

Company also has two bond issues outstanding : Filer Manufacturing has 8 million shares of common stock outstanding. The current share price is $50, and the book value per share is $5. The company also has two bond issues outstanding. Both bonds make semiannual payments. The tax rate is 40 percen..
Manufactures and sells single product called ret : Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 48,000 Rets per year. Costs associated with this level of production and sales are given below: Assume that due to a recessi..
What is the impact on income by closing the plant : Birch Company normally produces and sells 46,000 units of RG-6 each month. RG-6 is a small electrical relay used as a component part in the automotive industry. Assuming that the strikes continue for two months, what is the impact on income by closin..
The modified internal rate of return : The Modified Internal Rate of Return (MIRR) addresses two concerns related to the Internal Rate of Return (IRR) technique. Discuss what they are and how they are addressed by the MIRR.
What is target variable cost per mouse : A company believes it can sell 5,900,000 of its proposed new optical mouse at a price of $10.00 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..
Management estimates that the variable cost of the globe : The Falling Snow Company is considering production of a lighted world globe that the company would price at a markup of 0.25 above full cost. Management estimates that the variable cost of the globe will be $70 per unit and fixed costs per year will ..
What is the project expected npv and standard deviation : Shao Industries is considering a proposed project for its capital budget. The company estimates that the project's NPV is $12 million. This estimate assumes that the economy and market conditions will be average over the next few years. What is the p..
Move towards adopting financial leverage is good idea : Santos Unlimited (SU) was originally unlevered with 4400 shares outstanding. However, after a major financial restructure. SU now has $38000 of debt, with an annual interest expense of 10 percent The restructuring has reduced the number of shares to ..
Project with conventional cash flows has profitability index : If a project with conventional cash flows has a profitability index of 1.0, the project will:1) never pay back. 2) have a negative net present value. 3) have a negative internal rate of return. 4) produce more cash inflows than outflows in today's do..

Reviews

Write a Review

Financial Management Questions & Answers

  Does there appear to be a relationship between two variables

Graph both the rate of change of M2 from the category "Monetary Aggregates" and the rate of change of the CPI from the category "Consumer Price Indexes (CPI)."

  Calculate the npv of a proposed project

Given the following information, calculate the NPV of a proposed project: cost=4000 estimated lfe 3 years; initial decrease in accounts receivable=1000 which must be restored at the end of the project's life; estimated salvage value 1000; net income ..

  What can be said about the relationship

What is the conclusion? Is there evidence of a mean difference in values of appraisal predicators?

  What cost of capital should newton purchase the crusher

Newton Rock Co is considering the purchase of a new rock crusher. This new machine will allow Newton to receive new cash flows of $20,000 per year for the next four years. At the end of the fourth year, Newton will sell the crusher for $75,000. At wh..

  What is the balance in the cash account

Your current assets consist of cash, accounts receivable, and inventory. Total current liabilities equal $200,000. The average collection period is 20 days on average daily credit sales of $2,500. The current ratio is 1.3 and the quick ratio is 0.625..

  Salvage value after tax

Your firm needs a computerized machine tool lathe which costs $52,000 and requires $12,200 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category...

  Invest all of your money in the stock of one firm

If you invest all of your money in the stock of one firm.....

  Dividends are expected to grow

Momsen Corp. is experiencing rapid growth. Dividends are expected to grow at 30 percent per year during the next three years, 20 percent over the following year, and then 5 percent per year indefinitely. The required return on this stock is 11 percen..

  Calculate the new value of the operations

Lincoln Funeral Home has a capital structure consisting of 20% debt and 80% equity. Lincoln’s debt currently has an 8% yield to maturity. The risk free rate is 5% and the market risk premium is 7%. Should the company go ahead with the new plan? b) As..

  What is the highest rate you can afford

Assuming monthly compounding, what is the highest rate you can afford on a 72-month APR loan? (Round your answer as directed, but do not use rounded numbers in intermediate calculations.

  The combined portfolio to accomplish your goal

SwellCo has a beta of 1.05 and Foggy Cloud has a beta of 0.35. If you want a portfolio with a 0.5 beta, what is the weighting of SwellCo in the combined portfolio to accomplish your goal?

  Interest on debt is tax deductible and dividend on stock

Since interest on debt is tax deductible and dividend on stock is not. Companies are financially better off issuing as much debt as possible. The optimal capital structure is the same for all the companies in the each industry.

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