What is the target variable cost per mouse

Assignment Help Financial Management
Reference no: EM13937155

A company believes it can sell 5,500,000 of its proposed new optical mouse at a price of $10.50 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: EM13937155

Questions Cloud

What is cash flow to stockholders and operating cash flow : Volbeat Corp. shows the following information on its 2015 income statement: sales = $403,000; costs = $305,000; other expenses = $7,900; depreciation expense = $18,200;  What is the 2015 operating cash flow?  What is the 2015 cash flow to stockholder..
Liquidation sale : Mathias has been the sole proprietor of a clothing store for many years. He intends to retire after holding a "liquidation sale". He wants to avoid ordinary income from the sale of the business inventory, so he shuts down the store for one month and ..
Looking at new sausage system with installed cost : Kolby’s Korndogs is looking at a new sausage system with an installed cost of $645,000. This cost will be depreciated straight-line to zero over the project’s five-year life, at the end of which the sausage system can be scrapped for $103,000. If the..
What is the value of the firm : Cool Manufacturing has an expected EBIT of $89,000 in perpetuity and a tax rate of 35 percent. The firm has $210,000 in outstanding debt at an interest rate of 8.80 percent, and its unlevered cost of capital is 11 percent. What is the value of the fi..
What is the target variable cost per mouse : A company believes it can sell 5,500,000 of its proposed new optical mouse at a price of $10.50 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..
Expected return on the portfolio : You own a portfolio that has $2,150 invested in Stock A and $3,200 invested in Stock B. If the expected returns on these stocks are 10 percent and 17 percent, respectively, what is the expected return on the portfolio?
Considering production of a lighted world globe : The Falling Snow Company is considering production of a lighted world globe that the company would price at a markup of 0.30 above full cost. Management estimates that the variable cost of the globe will be $70 per unit and fixed costs per year will ..
Create a portfolio with an expected return : You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 16 percent and Stock Y with an expected return of 6 percent. If your goal is to create a portfolio with an expected return of 10.2 percent, how much ..
Time value of money-basics : Using the equations and tables in Appendix 12A of this chapter, determine the answers to each of the following independent situations: The future value in two years of $2,000 deposited today in a savings account with interest compounded annually at 6..

Reviews

Write a Review

Financial Management Questions & Answers

  The firms cost of capital

The capital budgeting director of Spar Corporation is evaluating a project which costs $280,000, is expected to last for 10 years and produce after-tax cash flows, including depreciation, of $42,500 per year. As soon as the project ends, we will sell..

  File contains zero-coupon yields-zero-coupon bond

It is August 29, 2003 and you hold a $1mm (market value) long position in the 1-yr zero-coupon bond. Using modified durations, determine how much of the 5-yr zero- coupon bond you need to short so that your portfolio remains approximately unchanged i..

  Shares of common stock outstanding

Tom and Jerry's has 2.1 million shares of common stock outstanding, 2.1 million shares of preferred stock outstanding, and 11.00 thousand bonds. If the common shares are selling for $13.10 per share, the preferred shares are selling for $10.10 per sh..

  What is the stated rate on this bond

Byrd Corp. 10-year bonds are selling at a quote of 98 on the NASDAQ and you just recieved your first interest check for $55.55. What is the stated rate on this bond?

  Assets cost immediately versus capitalizing the cost

Regarding expensing an asset's cost immediately versus capitalizing the cost and depreciating it over time: All else the same, given a choice, a tax paying firm would generally prefer to: Capitalize the cost & depreciate, because they will make the c..

  Calculate the present value of the capital portion

The fair rate of return on similar debentures is 14% before tax. Calculate the present value of the capital portion of the debenture.

  What is the present value of this growing perpetuity

You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $24,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 0.03 annually. If you use ..

  Four types of financial statements are useful to you

Briefly describe how, as a healthcare manager, the four types of financial statements are useful to you, and how they "fit" together.

  How much would you have to invest today to receive

How much would you have to invest today to receive? a. $6,900 each year for 19 years at 9 percent?

  From a purely financial perspective are there situations

From a purely financial perspective are there situations in which a business would be better off choosing a project with a shorter payback over one that has a larger NPV?

  Maturity and sells-what is the yield to maturity

A municipal bond has 5 years until maturity and sells for $5,156. If the coupon rate on the bond is 5.88 percent, what is the yield to maturity? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

  Portfolio that is equally invested in the two assets

A stock has a beta of 1.3 and an expected return of 12.8 percent. A risk-free asset currently earns 4.3 percent. Required: (a) What is the expected return on a portfolio that is equally invested in the two assets?

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