e rapid growth of Internet retail sales, Wildhorse believes es for growth in the delivery of non-standardized boxes. The company has foxed costs of $13,868.100 pon total sales dollars even point in total sales dollars? At the break-even point, how much of the company's sales are (Use Weighted Average Contribution Margin Ratio rounded to 2 decimal places eg. 0.22 and round final 510) boxes
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- (Identifying incremental revenues from new product innovations) Morten Food Products, Inc. is a regional manufacturer of salty food snacks. The firm competes directly with the national brands including Frito-Lay, but only in the U.S. Southeast. Last year Morten sold $300 million of its various chip products and hopes to increase its sales in the coming year by offering a new line of baked chips. The new product line is expected to generate $42 million in sales next year. However, the firm's analysts estimate that about 45 percent of these revenues will come from existing customers who switch their purchases from one of the firm's existing products to the new healthier baked chips. a. What level of incremental sales should the company analyst attribute to the new line of baked chips? b. Assume that 25 percent of Morten's existing customers are actively looking for a healthier snack alternative and will move to another company's baked chip offering if Morten does not introduce the new…PLEASE SOLVE IN EXCEL :B&B has a new baby powder ready to market. If the firm goes directly to the market with the product, there is only a 60 percent chance of success. However, the firm can conduct customer segment research, which will take a year and cost $1.21 million. By going through research, the company will be able to better target potential customers and will increase the probability of success to 75 percent. If successful, the baby powder will bring a present value profit (at time of initial selling) of $19.1 million. If unsuccessful, the present value payoff is only $6.1 million. The appropriate discount rate is 14 percent. Calculate the NPV for the firm if it goes to market immediately and if it conducts customer segment research. (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) Should the firm conduct customer segment research or go to the market immediately? multiple…Calico Restaurants is planning to create a new online meals-to-order service and has estimated that creating it will have the following effects on its operations: a. Annual revenues will increase from $800,000/year to $1,300,000/year, for the next 3 years. b. While the restaurant earns an EBITDA margin (EBITDA as percent of sales) of 30% currently, it expects to earn an EBITDA margin of 40% on just its incremental online sales. c. The tax rate is 20% and the appropriate cost of capital for online restaurant businesses is 12%. Assuming that there will be an initial cost of $450,000 for creating the service, which will be depreciated straight line over 3 years to a salvage value of zero, estimate the NPV for the investment. a. 112,365 b. 9,865 C. -2,354 d. 6,348
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- Suppose startup QuickFood proposes a new business model for delivering food in suburban areas. The business model includes fast revenue growth through entry into new cities. The company hopes to be worth $500 million in 5 years. A reasonable discount rate for the food delivery sector based on public comparables is 12%. How much is this company worth today (please round to closest unit)? -60 -284 -446 -313 -300Cyber Security Systems had sales of 4,600 units at $65 per unit last year. The marketing manager projects a 30 percent increase in unit volume sales this year with a 40 percent price increase. Returned merchandise will represent 5 percent of total sales. What is your net dollar sales projection for this year?1. Your company has an opportunity to enhance its plastic product by adding a new feature. To make the feature, you need a new injection molding machine costing $100,000. On a per unit basis the cost of the unit increases by $3.00. You expect to be able to sell it for an additional $4.00 per unit. Sales believes that the sales will be 150,000 per year for the next five years. a. What is the ROI time? Determine the answer mathematically and show your manager a graphical representation.