What is the net income under the worst case scenario

Assignment Help Finance Basics
Reference no: EM13281387

Miller Mfg. is analyzing a proposed project. The company expects to sell 13,000 units, plus or minus 3 percent. The expected variable cost per unit is $6.00 and the expected fixed cost is $36,000. The fixed and variable cost estimates are considered accurate within a plus or minus 6 percent range. The depreciation expense is $31,000. The tax rate is 34 percent. The sale price is estimated at $15.00 a unit, give or take 4 percent.

What is the net income under the worst case scenario?

 

Reference no: EM13281387

Questions Cloud

What is the time constant for the damping of the oscillation : A small earthquake starts a lamppost vibrating back and forth. What is the time constant for the damping of the oscillation
Draw a potential energy versus reaction coordinates diagram : Sketch a potential energy versus reaction coordinates diagram for the following reaction
Crime report and the national crime victimization survey : Discuss the Uniform Crime Report and the National Crime Victimization Survey; how are they alike and how are they different?
What is the net income under the worst case scenario : The tax rate is 34 percent. The sale price is estimated at $15.00 a unit, give or take 4 percent.
Pediatric vitamin contains : If a pediatric vitamin contains 1500 of vitamin A per mililiter per solution, how many units of units of vitamin A would be administered to a child given 2 drops of the solution of from a dropper calibrated to deliver 20 drops per mililiter of soluti..
Find active-reactive and apparent power input to transformer : Determine (a)secondary voltage; (b)secondary current; (c)primary current; (d)input impedance at primary terminals of transformer; (e)active, reactive, and apparent power input to transformer.
What is the work done by the lifting force : a 760 kg light weight helicopter ascends from the ground with an acceleration of 2.5m/s^2. what is the work done by the lifting force
The average collection period of the receivables in terms : Hickory Hills Pro Shop had a balance in the Accounts Receivable account of $800,000 at the beginning of the year and a balance of $900,000 at the end of the year. Net credit sales during the year amounted to $7,310,000. The average collection p..

Reviews

Write a Review

Finance Basics Questions & Answers

  What was the most recent dividend per share paid

If the company maintains a constant 6 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?

  What is the value of lsi equity using the flow

LSI recently issued $195,000 of perpetual 9% debt and used the cash to do a stock repurchase. Earnings for LSI are anticipated to be $83,000 annually before interest and taxes.

  What is the annual percentage increase in the winners prize

In 1985 U.S. Open winner won $150. In 2009, the winner won $1,350,000. What is the annual percentage increase in the winners prize money over this time period. If the winners prize increases at the same rate, what will it be in 2045?

  Find the risky stock

Common stock A has an expected return of 10 percent, a standard deviation of future returns of 25 percent, and a beta of 1.25. Common stock B has an expected return of 12 percent,

  Calculate the cost of equity using the dcf method

Berta Industries stock has a beta of 1.30. The company just paid a dividend of $0.30, and the dividends are expected to grow at 4 percent. The expected return on the market is 13 percent, and Treasury bills are yielding 4.8 percent. The most recen..

  What is the sustainable rate of growth

The Green Giant has a 6 percent profit margin and a 60 percent dividend payout ratio. The total asset turnover is 1.3 and the equity multiplier is 1.6. What is the sustainable rate of growth?

  Current price of klein stock

The last dividend paid by Klien Company was $1.00. Klein's growth rate is expected to be a stable 4%. Find out the current price of Klein's common stock?

  Calculate standard deviation and coefficient of variation

A stock's return has the following distribution, Demand for the Probability of This Rate of Return Company's Products Demand Occuring if This Demand Occurs

  What is the firms weighted average cost

The General Store has a cost of equity of 15.8 percent, a pre-tax cost of debt of 7.7 percent, and a tax rate of 32 percent. What is the firm's weighted average cost of capital if the debt-equity ratio is 0.40?

  Three theories of dividends

You determine the capital structure of your company; therefore you should compare the two theories of capital structure and determine what mix of capital structure your company.

  Time value of money in economic decisions

Please describe why the time value of money is significant in an economic decision and how NPV and payback period are used in business to incorporate the time value of money into operational decision.

  What is the firms value of operations

If the weighted average cost of capital is 14%, what is the firm's value of operations, in millions?

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