User Account

All Pages

What would happen to the break-even point

Assignment Help Financial Management
Reference no: EM131912885

BREAK-EVEN ANALYSIS

The Warren Watch Company sells watches for $26, fixed costs are $155,000, and variable costs are $13 per watch.

a. What is the firm's gain or loss at sales of 9,000 watches? At 15,000 watches?

b. What is the break-even point? Illustrate by means of a chart.

c. What would happen to the break-even point if the selling price was raised to $33? What is the significance of this analysis?

d. What would happen to the break-even point if the selling price was raised to $33 but variable costs rose to $24 a unit?

Reference no: EM131912885

Questions Cloud

Find the theta of the option as the expiration time : Assume that a $60 strike call has a 2.0% continuous dividend, r = 0.05, and the stock price is $61.00.
Displays the information about the movie : researching constructors and dimensions. Can someone assist with explaining how to code such an example
Prepare journal entries for april to record transactions : Materials purchases (on credit). Direct materials used production. Prepare journal entries for the month of April to record the above transactions.
What is the best estimate for the population mean : What is the best estimate for the population mean? The best estimate for a population mean for the dive scores in the Olympics is 900
What would happen to the break-even point : What would happen to the break-even point if the selling price was raised to $33? What is the significance of this analysis?
Program that uses a loop to display the number of calories : Need some help to write a program that uses a loop to display the number of calories burned after running on a treadmill for 10, 15, 20, 25, and 30 minutes.
What are the two projects net present values : What are the two projects' net present values, assuming the cost of capital is 5%? 10%? 15%?
Conduct an appropriate hypothesis test : Conduct an appropriate hypothesis test using (i) the p-value method and (ii) the rejection point method.
What is the optimum order size : Massa Machine Tool expects total sales of $14,000. Price per unit is $8. Firm estimates an ordering cost of $13.28 per order. What is the optimum order size?

Reviews

Write a Review

Financial Management Questions & Answers

  Record income taxes payable or refundable

prepare the journal entries for the years 2014 to 2016 to record income taxes payable or refundable

  What would be the annual interest rate from that company

A payday loan company charges 6 percent interest for a two-week period. What would be the annual interest rate from that company?

  What is future value of these payments at end of five year

You expect to receive an annuity of $1,000 per year for the next five years. The market rate of interest is 12%. Assuming that you do not spend any of the income at any other time, what is the future value of these payments at the end of five years? ..

  Identify external and internal marketing metrics

From a management perspective, identify external and internal marketing metrics which provide a market- based view of company performance. This includes both forward and backward looking metrics.

  Which a corporate financial manager operates

What are the three major functional areas in which a corporate financial manager operates?

  Bonds return the par value to the bondholders at maturity

Bonds return the par value to the bondholders at maturity. There is little you can do to change your credit score so it is not worth time to try and manage it.

  What is the accumulated sum of the stream of payments

What is the accumulated sum of the following stream of payments?

  Long-term corporate bonds

You invested in long-term corporate bonds and earned 6.1 percent. During that same time period, large-company stocks returned 12.6 percent, long-term government bonds returned 5.7 percent, U.S. Treasury bills returned 4.2 percent, and inflation avera..

  Long position in an oil futures contract

You are a hedger who takes a long position in an oil futures contract on November 1, 2009 to hedge an exposure on March 1, 2010. The initial futures price is $50. On December 31, 2009 the futures price is $49. On March 1, 2010 it is $55. The contract..

  Target capital structure of debt and preferred stock

Shi Importers' balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity. Shi's tax rate is 30%, rd = 6%, rps = 8.7%, and rs = 13%. If Shi has a target capital structure of 30% debt, 5% preferre..

  The payback rule works best in evaluating

The payback rule works best in evaluating which one of the following?

  Terms of product-price-place and promotion

What should be marketing mix strategies for new mba program (will launch early next year) of university in terms of product, price, place and promotion?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd