Youre considering the start of a small business that sells

Assignment Help Finance Basics
Reference no: EM13478978

You are considering the start of a small business that sells generator gaskets. According to your market research, you can sell each gasket for $12. Your fixed costs for the business are estimated at $35,000 and you estimate your variable costs to be $6 per gasket.

Required:

  1. How many units will you have to sell to break even in the business? Calculate the breakeven point in units, and then in dollars.
  2. In order to make the business a worthwhile activity, you require a $20,000 profit. How many units would you have to sell to make this venture worthwhile?
  3. Explain how breakeven analysis can be useful to the person starting a small business and/or to an existing small business.

Reference no: EM13478978

Questions Cloud

The maturity risk premium for all bonds is found with the : kay corporation 5-year bonds yield 6.20 and 5-year t-bond yield 4.40. the real risk rate is r2.5 the inflation premium
If you need 080 in assets for every 100 in sales by how : you have been running your small business crafts boat shop for several years now and have been very successful. you
Topic returning home-impact of cultural differences should : topic returning home-impact of cultural differences should be 1000 word essay in englishshould be in apa
I expects net working capital to increase by 100000 at : kads inc. has spent 400000 on research to develop a new computer game. the firm is planning to spend 250000 on a
Youre considering the start of a small business that sells : you are considering the start of a small business that sells generator gaskets. according to your market research you
Conch republic electronics is a midsized electronics : conch republic electronics is a midsized electronics manufacturer located in key west florida. the company president is
Sll for 210 in one years time immediately after it pays a : jumbuck exploration has a current stock price of 2.00 and is expected to sell for 2.10 in one years time immediately
I have an essay to write however i want you to write more : i have an essay to write. however i want you to write more than 900 words. please make it in a simple words not
The note requires principal and interest at 12 to be paid : on november 1 2013 the company borrowed 200000 from a bank. the note requires principal and interest at 12 to be paid

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate percentage change in operating cash flow

At an output level of 55,000 units, you compute that the degree of operating leverage is 3.25. If output increase to 64,000 units, Calculate the percentage change in operating cash flow be?

  Investment decision rule problems

Investment Decision Rule Problems : -  A $25 investment produces $27.50 at the end of the year with no risk. If the OCC = 10% annually is this a good investment?

  How much would that 22 year old bond sell for today

Assume that the Treasury sold a $100,000, 30 year bond exactly twenty two years ago. That bond carried a coupon rate of 10.5%. Also assume that today Treasury security maturing in the five to ten year period yield 2.0%. How much would that 22 year..

  What forces might tend to equalize rates

What are the implications of all this for the pressure now being put on Congress to permit banks to engage in nationwide branching?

  The companys financial experts say that the appropriate

21st century cat is a film producing company which is contemplating the productionof a new film. they estimate thatthe

  Oreilly moving company has a 1000 par value convertible

oreilly moving company has a 1000 par value convertible bond outstanding that can be converted into 25 shares of

  Determine the probability for next year

QAZ Corporation owns a fleet of 100 automobiles, for which the probability of loss is approximately equal to .05. Apply the Poisson distribution to determine the probability that QAZ will suffer two or fewer auto accidents next year.

  What is the new dividend yield

what was this talks dividend yielded at the time of issue if the stock market price has risen to 60 per share, what is the new dividend yield?

  Find expected holding period return on the stock

Corporation ABC's stock trades at $52 per share. You intend to buy the stock today and hold it for two years. Two years from today, you expect to sell the stock at $54.75 each share.

  Mulberry corporation has an august 31 year-end mulberry had

mulberry corporation has an august 31 year-end. mulberry had 50000 in accumulated e amp p at the beginning of its 2011

  What is the required return on okefenokee stock

The treasurer estimates that the beta of the stock is currently 1.5 and that the expected risk premium on the market is 6%. The Treasury bill rate is 4%. Assume for simplicity that Okefenokee debt is risk-free and the company does not pay tax.

  Create a portfolio as risky as the market

You want to create a portfolio as risky as the market. Suppose you invest your money in Stocks A, B, C, and the risk-free asset. What is the weight of Stock C in your portfolio?

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