What sales volume would be required

Assignment Help Finance Basics
Reference no: EM132013853

Question: A new company to produce state-of-the-art car stereo systems is being considered by Jagger Enterprises. The sales price would be set at 1.6 times the variable cost per unit; the VC/unit is estimated to be $4.50; and fixed costs are estimated at $250,000. What sales volume would be required in order to have an EBIT of $300,000 for the stereo business?

Reference no: EM132013853

Questions Cloud

Did alexander hamilton play a role in american revolution : Did Alexander Hamilton play a role in the American Revolution? How did taxes play a role in the American Revolution?
What will be the average annual cost of ownership : A new machine will cost $17,000 and will have an estimated salvage value of $14,000 in five years. Special tools for the new machine will cost $5000.
Is the pilot legally liable for the passengers injuries : Is the pilot legally liable for the passenger's injuries and to the FBO for destroying its airplane? Explain.
What was george washington role during american revolution : Who was the american ambassador to france during the revolution? What was George Washington's role during the American Revolution?
What sales volume would be required : A new company to produce state-of-the-art car stereo systems is being considered by Jagger Enterprises. The sales price would be set at 1.6 times the variable.
Did the irish play a role in the american revolution : Did the Irish play a role in the American Revolution? What role did African Americans play in the American revolution?
What sports were played during the american revolution : What were the roles of women before during and after the American Revolution? What sports were played during the American revolution?
What will be the value of your shares : Suppose you owned $ 1,000 worth of shares before the announcement. What will be the value of your shares after Megasoft is levered.
How many colonists were indentured or limited : Were people able to leave after they arrived? How many colonists were indentured or limited?

Reviews

Write a Review

Finance Basics Questions & Answers

  Potential estate tax liability

The goal of this Estate Planning Case Study is to make adjustments to an existing estate plan to eliminate the potential estate tax liability.

  What is the projects operating cash flow for the first year

What is the project ' s operating cash flow for the first year (t = 1)? Page(s): 459, Financial Management: Theory & Practice by Eugene F. Brigham

  If the interest rate of 10 increases to 12 how many basis

if the interest rate of 10 increases to 12 how many basis points did it

  What is the value of the cash coverage ratio

A firm has sales of $4,840, costs of $2,640, interest paid of $179, and depreciation of $493. The tax rate is 34 percent.

  What do liquidity ratios measure activity ratios leverage

what do liquidity ratios measure? activity ratios? leverage ratios? profitability ratios? market

  A firms common stock just paid an annual dividend of 100

a firms common stock just paid an annual dividend of 1.00 per share. the growth rate in dividends is 5 and the stock

  Determine the implied repo rate on the spread

The CF for delivery in June was 1.3593, and the CF for delivery in September was 1.3581. Delivery is on the first of the month, and the coupons are paid on February 15 and August 15. The accrued interest is 3.29 on June 1 and 6.16 on September 1.

  Creating income statement and calculate cash flow

Payne Urology, a non profit business, had revenues in 2012 of 96,000 dollar. Expenses other than depreciation were 75 percent of revenues and Depreciation was $10,000.

  Firm a has 10000 in assets entirely financed with equity

nbsp1. firm a has 10000 in assets entirely financed with equity. firm b also has 10000 in assets but these assets are

  What is the required rate of return on this stock

The common stock of ABC Industries is valued at $71.84 a share. The company increases their dividend by 4.9 percent annually and expects their next dividend to be $3.79. What is the required rate of return on this stock?

  Define and discuss the concepts of risk and return

Discuss the importance of portfolio diversification and the relationship to risk and return.

  Standard deviation of pge monthly returns

The past five monthly returns for PG&E are -3.37 percent, 4.38 percent, 3.97 percent, 6.77 percent, and 3.78 percent.

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