The Price Company will produce 55,000 widgets next year. Variable costs will equal 40 percent of sales, while fixed costs will total R110,000. At what price must each widget be sold for the company to achieve an EBIT of R95,000?

Q: All of the following, excer one, are examples of investment. Which is the exception? O A graphic…

A: Investment is defined as the dedication of assets for attaining the rise in the value over the…

Q: Suppose you are considering two possible investment opportunities: a 12-year Treasury bond and a…

A: Here, Current Real Risk Free Rate is 3% Inflation for next 2 years is 2% Inflation for next 4 years…

Q: Insurance companies may use all of he following sources to oblain underwriting information about an…

A: The answer is option A. A.The Medical Information Bureau (MIB)

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A: Current Yield = interest/Current Market price Let us answer this question with the help of two…

Q: AllCity, Inc., is financed 42% with​ debt, 7% with preferred​ stock, and 51% with common stock. Its…

A: Weighted Average cost of capital (WACC): The WACC is the overall cost of capital from all the…

Q: Suppose that you want to use the 10-year historical average return on the Index to forecast the…

A: 95% confidence interval can be calculated using the below formula: Standard error is: Standard…

Q: SR Bikes has budgeted to make luxury branded drink bottles from recycled plastic and wants to sell…

A: The desired profit depends on the contribution margin and fixed cost and number of units sold by the…

Q: Your portfolio consists of115 shares of CSH and 75 shares of​ EJH, which you just bought at $22and…

A: A portfolio is made of different stocks. The portfolio return depends upon the individual returns…

Q: Find the equivalent interest rates to the given nominal interest rates. a. Nominal interest rate…

A: Solution:- Nominal interest rate means the periodic interest rate adjusted by number of periods,…

Q: Is the following statement correct, wrong or partially correc? Why? "If the volatility of Stock A is…

A: This statement is CORRECT.

Q: percent-of-sales method to preparing a pro forma income statement

A: A weakness of the per cent-of-sales method in preparing a pro forma income statement is  First, the…

Q: what should be the number of years to maturity? Round the year to two decimal places. Assume the par…

A: Treasury STRIPS: These are bonds that are sold at the discount and are paid at face value at the…

Q: ind the present value of a perpetuity starting at time 10 paying 100 nnually if the interest rate is…

A: A perpetuity is an annuity that goes on forever. In other words a perpetuity, as the name indicates,…

Q: Monthly sales of storage sheds at Wallace Garden supply are shown in the following table. Using the…

A: Month Actual Sales January 10 February 12 March 16 April 13 May 17 June 19 July 15…

Q: An example of an ‘intermediate good’ would be:     the petrol purchased by consumers for their…

A: Intermediate goods are goods that are used as a factor of production to create goods that can…

Q: Circuit City’s inventory turnover is twice as fast as the industry average. It is safe to assume…

A: Inventory turnover ratio is one of the efficiency ratio being used in business. This shows how much…

Q: During the year Honda Motor Company shares went from ¥9,010 to ¥11,210, while paying a dividend of…

A: The stock market is a collection of exchanges and other locations where you can purchase and sell…

Q: what is the equivalent annual cost of the maintenance?

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: A Rio Tinto corporate bond currently sells for $1,450, which gives it a yield to maturity of 7%. Its…

A: Here, Current Price of Bond (P0) is $1,450 New Price due to change in Yield (P1) is $1,400 Change in…

Q: bt financing is likely to appeal most strongly to organizations that have predictable profits and…

A: In Debt financing there are interest payment to be made each period but there are tax deductions for…

Q: 6. What is the present value of a debt of P 150,000 due in 11 months at 6% simple discount? a. P…

A: A Simple Discount refers to the type of loan where the interest is being deducted at the time of…

Q: If the stock price is 44, the exercise price is 40, the put price is 1.54, and the Black- Scholes…

A: The question is related to Balck Scholes model. The Black Scholes Merton option pricing model values…

Q: An annual perpetuity of $10,000 has a present value of $250,000.  What is the annual interest rate?

A: Present value of an annual perpetuity = Annual cash flow/Interest rate Interest rate = Annual cash…

Q: Is share repurchase always a positive move? explain

A: Repurchase of shares-Under this transaction, a company buys back its own shares directly from the…

Q: Machine A R100 000 5 years R10 000 R 34 000 27 000 32 000 30 000 26 000 Machine B R110 000 5 years 0…

A: Machine A Machine B Initial Cost              1,00,000.00              1,10,000.00 Expected…

Q: You are looking at an investment that will pay $1200 in 5 years if you invest $1000 today. What is…

A: Here, Investment Amount (PV) is $1,000 Accumulated Amount (FV) is $1,200 Time Period (n) is 5 years

Q: You invest 2000 into a fund at time 0 and an additional 1000 at time 1. The investment period is 2…

A: As we know, Future value : It is the value of an investment or asset in the future on a specific…

Q: 1. 1) A coupon bond with coupon rate 6% and coupon paid semiannually has a par value of $1,000,…

A: Solution: Price of bond is the present value of cash inflows receivable from bond. So, price of bond…

Q: is this statement true or false? and why?  Requiring a relative short pay-back period for projects…

A: In this question, we would evaluate whether the below statement stands True or False.  Requiring a…

Q: revenues of $2 million per year. Next year, based upon a decision on a long-term government…

A: Revenues of Plant = $2 Million If a government contract awarded then sales increase by 20% If a…

Q: Php100,000 is left in the bank for 20 years. At time 20, regular withdrawals annually will be done…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: 4. Which of the following statements is FALSE? A) A stock's return is perfectly positively…

A: Return on stock is the return that is gained by the investor for an investment in stock.

Q: Calculate Quick Ratio: AKA the Acid Test

A: The question is related to Ratio Analysis. Quick Ratio is a measure of short term solvency. It is…

Q: Long-term and short-term finance tends to be differentiated by:     the amount of finance raised.…

A: Companies can raise finance for long term or for short term. As the name indicates it is the word…

Q: Wally loves your analysis. He has now asked you to evaluate potential new project investments.  Both…

A: PAY BACK PERIOD Payback Period - It is the duration of the project life within which the initial…

Q: how much did she invest in each account? account paying 5% $________ account paying 11%…

A: Investment refers to those mechanism which is used by the company for the purpose of generating…

Q: An engineer decided to put up a trust fund for her daughter with the condition that his daughter…

A: Discounting is a technique which is used to compute the present value (PV) of future cashflows by…

Q: Investigate the job of financial manager by searching the library or Internet, by interviewing a…

A: A Financial Manager is a person who looks upon the financial health of the organization. In other…

Q: if the simple discount rate is 20.041%. waht is the Future value of P 51,703 after 4 years and 8…

A: Future Value is calculated as: = Present Value * (1 + rate) ^ (number of years)

Q: A service car whose cash price was P540,000 was bought with a down payment of P162.000 and monthly…

A: The capital recovery factor measures the rate at which the initial investment is recovered. It is…

Q: Suppose a business takes out a GHC5000, 5-year loan at 9%. If the loan agreement calls for the…

A: Here, Loan Amount = GHC 5,000 Term of loan = 5 years  Interest rate = 9% Principal payment each year…

Q: Question content area top Part 1 ​(Related to Checkpoint​ 6.4) ​ (Present value of a perpetuity​)…

A: The Present Value of Perpetuity is calculated by dividing cash flows by  the discount rate.  Present…

Q: The maintenance costs of a new boiler are estimated as follows: P 600 per year for the first 3…

A: As per question , we are provided : Future value of all maintenance = P20000 Compounding rate = 6%…

Q: Radio Shack has a quick ratio of 0.8, current liabilities of $8.5 billion, and inventories of $5.2…

A: Current Ratio: The current ratio is the ratio which shows the ability of the company to meet its…

Q: Which of the following parties would perform an external financial analysis on a firm?     The…

A: External analysis is the analysis done by the people who are outside the firm. These people cannot…

Q: The following table shows the sensitivity of four stocks to the three Fama–French factors. Estimate…

A: According to Fama Fench model there are more factors to be considered other than market premium and…

Q: What is the standard deviation of a portfolio composed of 60 per cent Aquaman and 40 per cent Green…

A: Standard deviation refers to a concept which measures the risk involved in a investment. It helps…

Q: Bobby's grandmother deposited $100 in a savings account for him when he was born. The money has been…

A: Here, Deposit Amount is $100 Interest Rate (r) is 12% Time Period (n) is 25 years Compounding Period…

Q: 2. UNIV Dreamers Publishing has a choice of publishing one of two financial economics books. It…

A: The expected Profit us calculated with the help of following formula  Expected Profit = Proft ×…

Q: On October 1, 2010, the spot price of the Euro was $1.46, and the price of the December 2010 futures…

A: Spot rate and future rates are interrelated to each other other and both go in hand in hand and…

Cost volume profit (CVP) analysis

CVP analysis is a cost-volume-profit technique of cost accounting that examines the influence of varying levels of expenses and volume on operating profit. Cost Volume Profit analysis determines the relationship between Cost, Sale Volume, sales price, and Profit. CVP analysis is also known as break-even analysis which helps the business organization, banks, and their management to determine and forecast how a change in total sales and cost affects the profit of the organization. CVP analysis helps in financial decision-making for the budget, expense, tax, market investment, and corporate finance and aims at measuring variations in cost and volume.