Your small toy manufacturing facility has the following information: Revenue per toy $1.19 Fixed costs $11,500 Material cost per toy $0.385 Electricity cost per toy $0.034 Labor cost per toy $0.11 Break Even is defined as Revenue = Total Cost What is the quantity of toys that must be sold to break even?
Q: 14. Mr. Reyes borrows P600.000 at 12% compounded annually. reeing to repay the loan in 15 equal…
A: When you take a loan then you have to make periodic regular payments towards the loan. The periodic…
Q: Use PMT= to determine the regular payment amount, rounded to the nearest dollar. Your credit care…
A: As per the given information: Loan amount (P)- $4900Interest rate (r) - 11.5%Payment frequency (n) -…
Q: Lever Age pays an 9% rate of interest on $9.70 million of outstanding debt with face value $9.7…
A: Given, Rate of interest = 9%. Outstanding debt = $9.70 million. EBIT = $2.3 million. Depreciation =…
Q: Assume that it is now January 1, 2022. On January 1, 2023, you will deposit Rs 1,000 into a savings…
A: Compounding refers to the process of adding interest on interest earned. The result is that the…
Q: Sinclair Manufacturing and Boswell Brothers Incorporated are both involved in the production of…
A: Degree of Combined leverage is used to calculate the optimum capital structure of the firm by…
Q: You want to endow a scholarship that will pay $6,000 per year forever, starting one year from now.…
A: Annual payment (C) = $6000 Discount rate (r) = 0.07 or 7% in first case Amount need to donate today…
Q: 4 years ago, you purchased a corporate bond for R975.30. At the time, the bond had a YTM of 9.25%…
A: Purchase price of the bond (PP) = 975.30 YTM (r) = 0.0925 Maturity period (n) = 8 Years Annual…
Q: You wish to finance the purchase of a boat home for $38,400. A finance company offers an APR of 12%…
A: Loan amortization is the process of paying off a loan based on an equal monthly payment. Each…
Q: On 2018-05-08, Muhammad and Priyanka each buy a Tbill with a face value of $4,000. 12-30. Muhammad…
A: T bills are purchased on discount to the face value of T-bill and the discount rate depends on the…
Q: Calculate the future value of $8,000 in a. Four years at an interest rate of 8% per year. b. Eight…
A: As per Bartleby Honor Code, when a question with multiple sub-parts is asked, the expert is required…
Q: If you place a stop-loss order to sell at $52 on a stock currently selling for $55.50 per share,…
A: Given: Stop loss order at $52 Current price = $55.50 Number of shares = 100 Stock price declines to…
Q: A friend asks to borrow $53 from you and in return will pay you $56 in one year. If your bank is…
A: Solution:- When an amount is deposited somewhere, it earns interest on it. The amount initially…
Q: c) You are an engineer working for the city of Seoul. You have estimated the annual toll revenues…
A: The PV analysis is undertaken to measure the profitability of a project by discounting the future…
Q: The date is January 14, 2019. Muhammad can buy T-bill A with a face value of $43,000 maturing on…
A: Tbill A Tbill B Purchase Date 14 January 2019 14 January 2019 Maturity Date 08 March 2019 26…
Q: Which investment will earn more money, a $1,000.00 investment for 6 years at 8% compounded…
A: Future value of investment with continuous compounding is calculated using following equation Future…
Q: You are trying to decide how much to save for retirement. Assume you plan to save $4,000 per year…
A:
Q: 3. Suppose the institution pays 7,5% interest, compounded annually will it take for $10 000 to grow…
A: Compounding is much more effective when considering when investment is done on the long period of…
Q: Find the final amount of money in an account if $1,400 is deposited at 2% interest compounded weekly…
A: Future Value =Present Value + [ Present Value * ( 1 + Interest rate ) Time period ] Given,…
Q: U.S. Steal has the following income statement data: Units Sold Total Variable Costs Fixed Costs…
A: DOL quantifies how a change in sales affects net income. After reaching a break-even point, a firm…
Q: 5. The following two mutually exclusive alternatives are being considered." Year A B 0 1 2345 -$3000…
A: Mutually Exclusive Project The phrase "mutually exclusive projects" is frequently used in the…
Q: As debt payment, P315,000 is due in 4 years and 7 months. If the debtor wishes to repay the debt…
A: Future Value is the value which is measured at a specified date at a given interest rate, it can be…
Q: 1. Explain the concept of of Principle no. 2 of Financial Management "There is risk-Return Trade Off
A: Question 1. The No.2 principle of financial management explains the risk return tradeoff which means…
Q: On July 12, 2019, Veronica borrowed P100,000 and agreed to pay the interest at 7% compounded…
A: A = P(1 + r/n)nt In the formula A = Accrued amount (principal + interest) P = Principal amount =…
Q: Levon sells cartoon balloons in town. His family business thrives. Levon's balloons are priced at…
A: Given, Levon's balloons priced = $8.00 each. Balloons sold = 275.
Q: Explain in a few sentences how discounting works. Illustrate how it works using an interest rate of…
A: Discounting is the conversion of a value received in the future into an equivalent value received in…
Q: How much must be deposited today into an account earning 3% interest annually to support annual…
A: Interest Rate = 3% Annual Withdrawal = $1,550
Q: $100 is lent for 5 years amd repaid in a single payment at the end of the 5 years. Calculate the…
A: We are given Present value=100 Rate=7% number of years=5 We have to calculate future worth of that…
Q: Your credit card has a balance of $3700 and an annual interest rate of 13%. You decide to pay off…
A: Given: Loan amount $3,700 Interest rate = 13% Years =1
Q: Which of the statement is incorrect? i) Eurobond is a bond issued by an international investor and…
A: Eurobond is a bond that is issued and traded outside the host country, where the currency of the…
Q: You have invested in two shares, Tinkle.com and Circumbendibus Wheels. Tinkle.com has volatility…
A: Portfolio volatility is a measure of portfolio risk. The portfolio volatility shows the tendency of…
Q: What is the present value of $10,000 paid at the end of each of the next 68 years if the interest…
A: Present value of ordinary annuity may be calculated though following formula Present Value =…
Q: a. What is the rate of return on the portfolio in each scenario? (Enter your answer as a percent…
A: Rate of return The return an investor gets from an investment is called the rate of return.…
Q: You are examining three different shares. Share A has expected return 6.20%, beta 0.47, and…
A: CAPM or Capital Asset pricing model is used to calculate the required rate of return to determine…
Q: Government places controls on the personal financial environment by use of Group of answer choices…
A: The personal financial environment refers to the part of finance that includes the investing and…
Q: Bronco Electronics' current assets consist of cash, short-term investments, accounts receivable, and…
A: Current ratio = Current asset / Current liability Current ratio = 3.6 Acid test ratio = (Current…
Q: A) Inflation rate; B) Interest rate; C) Not doing something; 2. People prefer to receive cash: A)…
A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: Over the next year, there is a 84% chance of the market being in state 1, otherwise it is in state…
A: Covariance between two stock measures the movement relationship between two assets. It is calculated…
Q: What are some strategies for compiling a budget proposal to combat recidivism in corrections?
A: Budget is a detailed plan for a defined period i.e., usually one year or one month or for one…
Q: You are trying to decide how much to save for retirement. Assume you plan tpo save $4.000 per year…
A: Here, To Find: Part A. No. of years required to exhaust the savings =? Part B. Rate of return need…
Q: If you place a stop-loss order to sell at $52 on a stock currently selling for $55.50 per share,…
A: Stop loss- This is a method adopted by an investor to limit the loss on a security position. The…
Q: Don Magellan borrowed today from Ginoong Magellan P300,000.00 and agreed to repay the loan with 4…
A: Loan amortization is a technique in which the borrower repays the amount borrowed with principal and…
Q: Suppose UZALO and MUVHANGO are involved in a Heritage Day project. They need to hire two acting…
A: Here, To Find: NPV =?
Q: Pursell Bank offers you a five-year loan for $50,000 at an annual interest rate of 8.75 percent.…
A: In the above question we have to calculate annual loan payments of Pursell Bank loan. To calculate…
Q: The back of the book says the answer should be $7,413. Do you know what there would be a…
A: As per the given information: EOYCash flow0-$30,0001$6,0002$13,5003$X4$13,500 MARR - 12% per year To…
Q: offer 30-year mortgage that requires annual payments and has an interest rate of 5% per year. What…
A: Mortgage amount are paid by monthly payment or annual payment these are fixed periodic instalments…
Q: Don Magellan borrowed today from Ginoong Lapulapu P300,000.00 and agreed to repay the loan with 4…
A: Here, To Find: Equal monthly payments =?
Q: 1. Explain the importance of having an Escrow Checklist?
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: A bank offers an account with an APR of 5.8% and an EAR of 5.88%. How does the bank compound…
A: APR is the annual percentage rate. It refers to the quoted rate or the nominal rate. EAR is the…
Q: A debt of P22, 000 with 12% interest compounded semi-annually by semi-annual payments over the next…
A: Loan amount is paid by equal periodic amount of payments and these payments carry the payment of…
Q: You are saving for retirement. To live comfortably, you decide you will need to save $3 million by…
A: Amount required at retirement (FV) = $3,000,000 Interest rate (r) = 0.07 Number of deposits (n) = 46…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follows: Their sales mix is reflected in the ratio 4:4:1. If annual fixed costs shared by the three products are $1 8840 how many units of each product will need to be sold in order forJj to break even?JackMan Company produces die-cast metal bulldozers for toy shops. JackMan estimated the following average costs per bulldozer: Prime cost per unit is a. 8.65. b. 1.10. c. 0.95. d. 2.05. e. 9.75.
- Marshall s target margin of safety be in units and dollars if they required a $14,000 margin of safety?Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.A company is negotiating with a potential supplier for the purchase of 100,000 widgets. The company estimates that the supplier’s variable costs are $5 per unit andthat the fixed costs, depreciation, overhead, and so on, are $50,000. The supplierquotes a price of $10 per unit. Calculate the estimated average cost per unit. do youthink $10 is too much to pay? Could the purchasing department negotiate a betterprice? How?
- Meg's Manufacturing Company can make 211 units of a component part for variable costs of $159,896 and fixed costs of $32,104. The compnay decides the buy the part externally instead for $153,734 and $4,789 of the fixed costs will be avoided. How much will net income increase or decrease? If net income increases, make your answer positive; If net income decreases, put a (-) negative sign in front of the answer. Round your answer to the nearest whole dollar and do not type the dollar sign.A Company wants to introduce new product. The estimated price of each mobile phone is RO 60. The company requires a profit margin of 20% on sales. The estimated cost of manufacturing the product is : Material cost : RO 9.500 Labour Cost : RO 12.750 Other Direct Expenses : RO 7.500 Administrative Costs : RO 5.000 Marketing and Selling expenses : RO 15.000 Calculate the Target Cost of the product and the Target Cost Gap.Sherpa Manufacturing has the following income statement for 6,000 units:Sales $600,000Variable costs 360,000Contribution margin 240,000Fixed costs 80,000Net income $160,000 Using the information above: a. At what sales volume (in sales dollars) does Sherpa break even?b. At what sales volume (in units) does Sherpa break even?c. Given the income statement above, compute the margin of safety.d. What level of sales volume must be attained to reach net income of $200,000?e. What level of sales volume must be attained to reach net income of $180,000, assuming Sherpa had to pay income taxes at a rate of 40%?You may attach your workbook(s) to this answer and/or use the textbox below
- A company is planning to manufacture computer desks. The fixed cost will be $60,000 and it will cost $200 to produce each desk. Each desk will be sold for $450. a. Write the cost function, C, of producing x desks. b. Write the revenue function, R, from the sale of x desks. c. Determine the break-even point. Describe what thisJims Company produces 60,000 type-C earphones with the following costs: Direct Materials P13,000 Direct Labor 15,000 Variable Overhead 3,000 Fixed Overhead 7,000 None of Jims fixed overhead costs can be reduced, but another product could be made that would increase profit by P4,000 if the earphones were acquired externally. If cost minimization is the major consideration and the company would prefer to buy the earphones, what is the maximum external price that Jims would be willing to accept to acquire the 60,000 units externally?Vaughn, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $17 Variable overhead 5 Fixed overhead 8 Total $30 Saran Company has contacted Vaughn with an offer to sell it 6900 of the wickets for $24 each. If Vaughn makes the wickets, variable costs are $22 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Vaughn make or buy the wickets? Make; savings = $6900 Make; savings = $13800 Buy; savings = $6900 Buy; savings = $20700