Denim Inc. sells printers for $290.00 each. The variable costs per printer are $39.75 and the fixed costs per week are $74,000.00. What would be the net income in a week in which 1,800 printers are sold? Round to the nearest cent
Q: A stock has a beta of 2.55 the expected return on the market is 8.2 percent, and the risk-free rate…
A: To calculate the expected return we will use the below formula Expected return = Risk free…
Q: Corporation issues $100,000 of 7% bonds on January 1, Year 1. The bonds have a six-year term and pay…
A: Price of bond is the present value of the coupon payment plus present value of the par value of the…
Q: United Pigpen is considering a proposal to manufacture high-protein hog feed. The project would…
A: Net present value is the modern method of capital budgeting that is used to determine the present…
Q: You buy an American call option priced at $0.025/€ on €225,000 at a strike price of $1.50/€. You…
A: In case of call option , option will be exercised if stock price is more than or equal to the strike…
Q: A small truck is purchased for $22,000. It is expected to be of use to the company for 9 years,…
A: Depreciation refers to the loss in the value of an asset over time due to usage. It is used by…
Q: In the federal funds markets, financial institutions can borrow money from the Federal Reserve.…
A: Financial instruments and products are various types of assets or contracts that can be bought or…
Q: A company has a policy of requiring a rate of return on investment of 16%. Two investment…
A: We need to use present value formula below to calculate present value in Alternative1 PV…
Q: Use the method of averages to find the approximate yield rate for the bond shown in the table below.…
A: Yield rate refers to the percentage of the investments made by the investors over a period of…
Q: What does standard deviation measure? A. The holding period B. The gain on the investment C. Risk D.…
A: We make investments in different instruments like stocks, bonds etc. These investments gives us some…
Q: You need to have $25,856 available at the end of 9 years. How much to do you have invest each year,…
A: The concept of time value of money will be used here. Money deposited today grows in future as it…
Q: Use the simple interest formula method to find the future value of an ordinary annuity of $2500 paid…
A: An annuity is a payment series that provides the holder with future cash flows in exchange for a…
Q: A student takes out a college loan of $8000 at an annual percentage rate of 3%, compounded monthly.…
A: A loan is an agreement in which a lender provides money or assets to a borrower, who agrees to repay…
Q: Suppose General Motors stock has an expected return of 18% and a volatility of 39%, and Molson-Coors…
A: An efficient portfolio is such a combination of two or more securities that yield a high level of…
Q: Consider the following balance sheet. Liabilities 200 Demand Deposits 100 Saving Deposits 800 0…
A: Return on assets refers to the financial ratio which is helpful in computing the percentage of…
Q: stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is…
A: Dividend Discount Model would be considered as the model under which the price of the stock is…
Q: None of these came as correct on my hoemwork I need a.) Net cash flow b.) incremental cash flow…
A: NPV shows the amount of value generated by the project and is represented in absolute profitability…
Q: How to evaluate the capital structure of Walmart as well as it's riskiness?
A: Capital structure refers to the mix of debt and equity financing used by a company to finance its…
Q: You are analyzing the after-tax cost of debt for a firm. You know that the firm’s 12-year maturity,…
A: A bond is a kind of debt security issued by the government and private companies for raising funds…
Q: Find the equated date at which the original payments are equivalent to the single payment. State…
A: The equivalent payment is the method of finding out the cumulative worth at a future date to compare…
Q: Procter and Gamble (PG) paid an annual dividend of $2.97 in 2021. You expect PG to increase its…
A: Current value of stock =…
Q: You have been asked by the president of the Farr Construction Company to evaluate the proposed…
A:
Q: n d t h r e e f i n a n c i a l g o a l s a n d r e l a t e d a c t i o n s f o r e…
A: The financial goal is an important indicator of the financial position and it deals with management…
Q: You are valuing a project for Gila Corporation using the APV method. You already found the net…
A: Adjusted present value is the aggregate of NPV of project and present value of interest tax shield…
Q: The risk-free rate of return is 4.24 percent and the market risk premium is 9.5 percent. What is the…
A: To calculate the expected return we will use the below formula Expected return = Risk free rate +…
Q: Johnny’s Lunches is considering purchasing a new, energy-efficient grill. The grill will cost…
A: Operating cash flow refers to the cash generated by the company from its normal business operations.…
Q: Canadian Western Bank issued a loan of $59,000 at 4.33% compounded semi- annually. The loan was…
A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…
Q: A firm’s expected sales as shown in the table below. company’s purchases amount to 70% of the…
A: The purchases for the month of March can be calculated based on the given information that purchases…
Q: You are given the following information about the cash flows for Projects A and B: Project B…
A: The NPV is a measure of the profitability of a project by discounting future cash flows at an…
Q: Given the following information, calculate the net present value: Initial outlay is $48,282;…
A: Net present value is calculated by deducting initial investment from present value of cash inflows.…
Q: You own a bond that pays an 18.25% coupon. The bond matures in 17 years and has a par value of…
A: To calculate the price of the bond we will use the below formula Price of the bond =…
Q: Jim borrows $300 at 4% per annum compounded quarterly for 7 years. Determine the interest due on the…
A: More is the compounding of interest than more is the effective interest rate and more is the…
Q: Give typing answer with explanation and conclusion Caspian Sea Drinks is considering the production…
A: Net Present Value is also known as NPV. it is a capital budgeting techniques which help in decision…
Q: Your uncle Claude is 70 years old. Over the years, he has accumulated savings of $300,000. He…
A: Present value sum = $300,000 Interest rate = 6% Period of withdrawals = 10 years
Q: A new project will have an intial cost of $12,000. Cash flows from the project are expected to be…
A: Payback period is a financial metric used to evaluate the length of time required for an investment…
Q: can purchase a new assembler for $15,052 that will provide an annual net cash flow of $6,000 per…
A: The analysis of capital budgeting this season involverine strike for technique and the most commonly…
Q: hat is the current YTM of the bonds and after-tax cost of debt for this firm if the bonds are s
A: Yield to maturity of bond is rate of return realized when bond is held till maturity of bond and all…
Q: Using the data in the following table, a. Average return and volatility for each stock. b.…
A: A stock is a security that describes the percentage of ownership of a company held by an individual.…
Q: Life can be unpredictable at times, and unexpected events can affect your budget. Suppose one month…
A: Unexpected bills are expenses that you did not anticipate or plan for in your budget. They can come…
Q: Jeslie Ann has a 48-month installment loan with a fixed monthly payment of $73.69. The amount she…
A: Here, Loan Amount is $3,200 Time Period is 48 months Monthly Payment s $73.69
Q: Suppose you borrow $275,000.00 by taking out a 15 year fixed rate mortgage with a monthly payment of…
A: Total cost refers to the total amount to be paid for repaying the amount of the loan including the…
Q: How to evaluate the capital structure of Amazon as well as its riskiness?
A: Capital structure are important tool in the decision makings.The mix of debt and equity financing…
Q: Analysts project that dividends for Industrial Amalgamated will be $2.00 per share next year and are…
A: Next year dividend = d1 = $2 Growth rate = g = 2.1% Required rate of return = r = 8.5%
Q: Walt's monthly salary is $6,762.50. What would be his equivalent semimonthly salary? $1,352.50…
A: Monthly salary = $6762.50 Number of months in semi month = n = 1 / 2 = 0.5
Q: Exchange rate risk is a. The risk associated with the use of debt financing by companies b. The risk…
A: Exchange rate risk is one of the main risks that a company (especially a multinational corporation)…
Q: A corporate bond with annual coupons has a duration of 4.9 years and a yield to maturity of 11%.…
A: Modified duration is a measure of the sensitivity of a bond's price to changes in interest rates. It…
Q: Acme Company is expanding and expects operating cash flows of $85,000 a year for 4 years as a…
A: Net Present Value (NPV) refers to one of the concepts from the modern techniques of capital…
Q: Business Math Worksheet 8.1b: Single Payment Loans Ordinary Interest = Principal x Rate x Time 360…
A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…
Q: A project will produce an operating cash flow of $2,000 a year for 8 years. The initial fixed asset…
A: Net Present Value(NPV) refers to one of the concepts from the modern techniques of capital budgeting…
Q: Suppose Autodesk stock has a beta of 2.30, whereas Costco stock has a beta of 0.68. If the risk-free…
A: Autodesk's beta=2.30 Autodesk's proportion in portfolio=60% Costco's proportion in portfolio=40%…
Q: Company A has a market capitalization of $2410539999 and 22833777 shares outstanding. It plans to…
A: The capital market is where instruments like stock, debentures, and bonds are traded for a longer…
Subject: Finance
Step by step
Solved in 3 steps
- Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The companys monthly fixed expenses are $36,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of November when they will sell 130 units. How many units will Marlin need to sell in order to realize a target profit of $48,000? What dollar sales will Marlin need to generate in order to realize a target profit of $48.000? Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.
- If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
- Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What is the cost formula for monthly shipping cost? Identify the independent variable, the dependent variable, the fixed cost per month, and the variable rate.Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
- Glassman Company sells its one product at $30 per unit. Variable costs are $25 per unit and fixed costs are $50,000 per month1. What is its break-even point in units?2. What is its break-even point in sales dollars?3. What sales, in units, are required to earn $20,000 for the month?4. What sales, in dollars, are required to earn $20,000 for the month?5. Suppose Glassman reduces its selling price to $28 because competitors are charging that amount. What is its new break- even point (a) in units? (b) in dollars?A company that manufactures electronic items sells them for $145 each. They need to sell 780 items per month to break even. If the fixed costs are $23,500 per month, what are the variable costs per item?Bosco Company sells boxes of cookies and has total fixed costs of $200,000 per month. Variable costs are $8 per box, selling price is $10. The company desires to make a profit of $100,000 per month. a. What is number of boxes that most be sold to break even each month? b. What is the contribution margin ratio? c. What is the $ amount of monthly sales needed in order to make the desired monthly profit?
