What sales price will be necessary to achieve a target profit of $1 million?
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Suppose executives estimate that the unit variable cost for their DVD recorder is $100, the fixed cost
related to the product is $10 million annually, and the target volume for next year is 100,000 recorders. What sales price will be necessary to achieve
a target profit of $1 million?
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- Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost 16x. Each unit of Wozac is sold for 3. Each unit of Wozac produced incurs a variable production cost of 0.20. It costs 0.40 per year to operate a unit of capacity. Determine how large a Wozac plant the company should build to maximize its expected profit over the next 10 years.You operate a small wooden toy company making two products: alphabet blocks and wooden trucks. Your profit is $30 per box of blocks and $40 per box of trucks. Producing a box of blocks requires one hour of woodworking and two hours of painting; producing a box of trucks takes three hours of woodworking, but only one hour of painting. You employ three woodworkers and two pointers, each working 40 hours a week. How many boxes of block (B) and trucks (T) should you make each week to maximize profit? Solve graphically as a linear program and confirm analytically.XYZ, a technology business, which is operating across the middle east and has a revenue growth target of 30% to achieve over the previous year. The CEO realized that this would require a higher-risk growth strategy to achieve this growth target in the current market conditions. Critically discuss the options the CEO can consider in meeting his growth target.
- The Sloan Corporation is trying to choose between the following two mutually exclusive design projects. If the required return is 10 percent, what is the profitability index for each project? What is the NPV for each project? Complete the following analysis. Do not hard code values in your calculations. You must use the built-in excel function to answer this question. Annual Cash Flows I II 0 $ (51,000.00) $ (14,000.00) 1 $ 24,800.00 $ 7,800.00 2 $ 24,800.00 $ 7,800.00 3 $ 24,800.00 $ 7,800.00 Required Return 10% Profitability index (I)_________________ Profitability index(II)_________________ NPV (I) ______________ NPV (II) ______________Your Lego furniture company makes Tables and Chairs. Below, you are given the starting inventory, selling price, and Bill of Materials (recipe, or construction requirements). You are to determine the number of Tables and Chairs to be built to maximize revenue. You must make 4 chairs for every table. Your answer will be the revenue generated by your production plan - rounded to the nearest whole dollar. (The number of tables and chairs must be a whole number.) Scenario 1 Large wood per table 3 Small wood per table 2 Large wood per chair 1 Small wood per chair 4 Revenue per table $35 Revenue per chair $29 Large wood inventory 300 Small wood inventory 500Hi can I get help on this please? I am stuck!! Question: lumber and plywood. In a given week, the mill can turn out 400 units of production, of which at least 100 units of lumber and at least 150 units of plywood are required by regular customers. The profit is $25 per unit of lumber and $38 per unit of plywood. Assume that all units produced are sold. How many units of each should the mill produce in order to maximize the profit? What is the maximum profit?
- AutoTime, a manufacturer of electronic digital timers, has a monthly fixed cost of $50,000 and a production cost of $7 for each timer manufactured. The timers sell for $15 each. (a) What is the cost function C(x)?C(x) = (b) What is the revenue function R(x)?R(x) = (c) What is the profit function P(x)?P(x) = (d) Compute the profit (loss) corresponding to production levels of 3000, 6000, and 11,000 timers, respectively. (Input a negative value to indicate a loss.) 3000 timers $ 6000 timers $ 11,000 timers $The fixed costs of Chun Company are $309,000 and the total variable costs for its only product are 45% of the sales price, which is $100. Chun currently sells 7,400 units per month and is looking to sell more. Consider each of the following independently: Part A The marketing manager is considering lowering base salaries of salespeople by a collective amount of $39,000 per month while increasing the sales commission by $8 per unit. He believes this will increase monthly sales by 130 units. If so, what would the effect of this change in compensation have on monthly income? INCREASE OR DECREASE of $BLANK Part B Management believes monthly sales can be increased by 570 units if additional quality control steps are taken. These steps would mean an increased variable cost per unit of $10. What is the expected effect on the company's monthly income of adding these additional quality control steps? (DECREASE OF 48,350, DECREASE OF 54050, DECREASE OF 48892, OR INCREASE BY 25650)Assume that a company provided the following information and assumptions from its master budget: Sales budget: Unit sales in June, July, and August are 20,000, 18,000, and 17,000, respectively. The selling price per unit is $80. All sales are on account. 20% of sales are collected in the month of sale and 80% are collected in the next month. What are the budgeted sales for July? Multiple Choice $1,440,000 $1,600,000 $288,000 $1,152,000
- Currently, the unit selling price of a product is $160, the unit variable cost is $120, and thetotal fixed costs are $725,000. A proposal is being evaluated to increase the unit selling priceto $170.Total Costs Units ProducedApril 300,000 2,700May 440,000 5,500June 325,000 3,500 A. Compute the current break-even sales (units).B. Compute the anticipated break-even sales (units), assuming that the unit selling price isincreased and all costs remain constant.You have an idea for a new web service that offers customized workouts for subscribers. Build a spreadsheet to calculate 1) the number of new customers each month and 2) the total customer base (cumulative number of customers signed up) each month. Mimic what we did in the class to project the subscription volumes for 60 months under the following sets of assumptions. a)Total market potential is 1,000,000 customers. Each month, you sign up 2% of customers in the market that have not yet signed up. b)Total market potential is initially 1,000,000 customers, but grows at 1% per month. Each month, you sign up 2% of customers in the market that have not yet signed up. Use the graph wizard to make a graph comparing total customer base under each of the two scenarios. Which type of graph is appropriate?The relationship between marketing expenditures (x) and sales (y) is given by the following formula, y = 9x − 0.05x2 + 9. (Hint: Use the Nonlinear Solver tool). What level of marketing expenditure will maximize sales? (Round your answer to 2 decimal places.) What is the maximum sales value? (Round your answer to 2 decimal places.)