Zaliea company produces hat with a variable cost of RM 5,000 for 500 pieces. Each unit was sold at RM 25 and the fixed cost is RM^(35),000. How much is the profit if 10,000 units are sold?
Q: payments for an expected 4 years. If rates are assumed to be 5% compounded monthly, how large will…
A: Using time value of money concepts, we can determine the monthly payments.
Q: assume that you believe that purchasing power parity (PPP) holds. You are an Australian investor…
A: Based on the purchasing power parity the interest and inflation have impact on exchange rate and…
Q: Use Bird Industry's summary financial statements to answer the following questions. Bird Industries,…
A: The common stock dividends are paid out of the current year profits or accumulated profits of the…
Q: Abner corporation's bonds mature in 19 years and pay 9 percent interest annually. if you purchase…
A: Yield to Maturity (YTM) is a financial concept that represents the total return an investor can…
Q: Problem 7-09 Inflation is a general increase in prices and may be measured by the Consumer Price…
A: a) CPI of year 30 = CPI of year 1 x (1+Inflation rate) ^ n Inflation Rate = [CPI of Year 30 / CPI of…
Q: Company Q's current return on equity (ROE) is 14%. It pays out 50 percent of earnings as cash…
A: The dividend discount model refers to the method of valuing the stock of a company based on the…
Q: Year 123 2 4 5 Returns X 17% 20 -7 11 10 Y 20% 32 Average returns Variances Standard deviations - 18…
A: YearXDeviation=X-XbarDeviation^21176.846.242209.896.043-7-17.2295.844111.21.44510-0.20.04Total51439.…
Q: classic car was for sale with a current asking price of $45,000. If a return of 8.5%, compounded…
A: Prices tends to increase with time due to interest and inflation due to the compounding of the that…
Q: Assume that a student graduates from college with $20,000 in student loans. If the interest rate is…
A: Given:PV = $20,000 r = 4.80% / 12 = 0.004 or 0.40% n = 15 years * 12 months/year = 180 payments
Q: A firm has a profit margin of 35.92, return on assets of 25.86 and a debt to equity ratio of 1.489.…
A: The calculation of return on equity ,Return of equity is the measure of company annual return as it…
Q: Bunny’s Antiques received $88.47 interest on a 120-day term deposit of $7800 . At what rate of…
A: Here,PrincipalValue of Deposit is $7,800Interest earned on Deposit is $88.47Time Period od Deposit…
Q: Use the following information to answer the question that follow: Net Income : $205,000 Profit…
A: Total Sales = Average Daily Credit Sales = x 60%Days' Sales in receivable =
Q: Calculate the semi-annual lease payment assuming that the payment is made at the end of the period.…
A: Semi-annual lease paymentA recurring payment made every six months as part of a lease agreement is…
Q: n a CAPM world, what do you need to know in order to estimate an asset's expected return? Group of…
A: In CAPM we measure the rate of return of the stock based on the beta of the stock that is related to…
Q: Stamps Office Supplies recently reported $15,500 of sales, $8,500 of operating costs other than…
A: Sales = s = $15,500Operating Cost other than Depreciation = oc = $8500Depreciation = d = $1700Value…
Q: Suppose someone offered to sell you a note (an investment) that calls for $1,000 payment two years…
A: .Future Value (FV) :FV represents the projected worth of an initial sum of money at a specific point…
Q: You have a balance of 15,000 on a credit card that charges an APR of 20% (compounded monthly). You…
A: Calculate the number of months to pay off the balance with the original monthly payment.Calculate…
Q: Use the following scenario analysis for Stocks X and Y to answer the questions below (round to the…
A: 1)Calculation of expected rate of return:Formula used:
Q: A large bank is quoting the following spot exchange rates for number of YEN per USD, number of THB…
A: To check if there is an arbitrage opportunity we need to determine the Yen/THB exchange rate using…
Q: to con using Company ust decide w equipment or replace it wi uipment. The following information is…
A: Net present value is the important capital budgeting method based on the time value of money and can…
Q: Cuny, Inc. reported the following common size date for the year ended December 31, 2022: (Income…
A: Liquidity analysis refers to a circumstance where the company measures its solvency level by making…
Q: Alex purchased a 10-year, zero-coupon bond today with a yield to maturity of 7.5% and face value of…
A: We need to use PV Function in Excel to calculate bond price. The formula is: =-PV( RATE, NPER, PMT,…
Q: If the Effective Annual Rate of interest is 5.21% assuming quarterly compounding, then what is the…
A: Nominal rate is the stated interest rate. For example, if you take a loan and the stated rate is 5%…
Q: tock price of ABC company at the end of 2018 was $85. In 2019 the quarter end stock prices are $94,…
A: Annual return = capital gain on stock + Dividend IncomeCapital gain on stock = Closing price of…
Q: Assess the foreign exchange risk of Ford Motor Company and instruments used to hedge it.
A: 1. Exposure Analysis: Evaluate the extent of Ford's exposure to foreign exchange risk by identifying…
Q: a. Compute the rate of return on an equally weighted index of the three defense stocks for the year…
A: Price-Weighted Index:In the price-weighted index, each security is weighted by the relevant price…
Q: 4. A 5-year bond (denote this as Bond A) with semiannual coupons has a face value of $1,000 and a…
A: Using linear interpolation with end points being 9% and 10%, approximate the bond's effective annual…
Q: You wish to have $200,000 at the end of twenty years. In the last five years, you withdraw $1,000…
A: Solution-
Q: The annual interest rate on a credit card is 17.99%. If a payment of $400.00 is made each month,…
A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…
Q: Sales Operating costs excluding depreciation EBITDA Depreciation EBIT Interest em: At the end of…
A: 1.EBITDA = Sales - Operating cost excluding depreciation2.EBIT = EBITDA - Depreciation3. EBT = EBIT…
Q: a) True b) False highe 19. What is the Present Value of a stream of quarterly cash flows of $55m…
A: Future value of the amount is the amount being deposited and amount of compounded interest…
Q: Matt’s Lemonade Stand is one of the most up and coming places to get lemonade. I’m looking to take…
A: Variable in the question:No. of shares outstanding=100
Q: The following information was obtained from XYZ Corporation: 2023 EBIT $200,000 Interest $50,000…
A: A company's ability to effectively manage its daily operations depends on how well its working…
Q: Consider the following financial information and answer the questions that follow: Sales : $250,000…
A: Since you have posted a question with multiple sub parts, we will be able to provide the solution…
Q: Suppose that the installation of Low-Loss thermal windows is expected to save $350 per year on your…
A: Saving = p = $350Time = t = 18 YearsInterest Rate = r = 9%
Q: k A has offered you a loan worth $20,000 for 180 days whereas bank B offered you the same loan but…
A: Credit, operational, market and liquidity risks are among the most serious threats that banks face.…
Q: Your are in need of cash and turn to your cousin, who offered to lend you some money. You decide to…
A: The rate of interest charged by the cousin is calculated using the following equationWhere, FV is…
Q: B) Firm A has a 6% coupon bond outstanding. Firm B has 14% coupon bond outstanding. Both bonds have…
A: Bonds are debt instruments issued by companies.The issuing company pays periodic (usually…
Q: You are invited to participate in an investment that will increase your wealth by 120% in 8 years.…
A: Rate of return is the amount of profit earned on the investment that is being made initial.
Q: Assume the federal government decides in jan 1, 2024, they'll issue a 5 year "Year" bond, that will…
A: The market price of the security will be equal to the present value of the cash flow payment to the…
Q: buy a property for and wants an 80 percent loan for that Tully zing 18an can be obtained for 30…
A: The mortgage loans are the secured loans and these loans are paid by the monthly payments that carry…
Q: 20) A C corporation earns $8.30 per share before taxes and the company pays a dividend of $2.00 per…
A: Dividend = d = $2Corporate Tax Rate = ct = 39%
Q: aul received a college scholarship and can choose whether to receive it as an immediate one time…
A: Present value is equivalent value today of the future payments based on the time value of money and…
Q: Your company is considering a high-risk project that could yield strong revenues but will involve a…
A: Project analysis refers to the usage of discounting and traditional approaches to evaluate the…
Q: Intro Income statement for 2016 (in $) 2016 Sales 400,000 Costs (incl. depr.) 280,000 EBIT 120,000…
A: Income Statement is a financial statement. which is prepared in every organization. It helps in…
Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…
A: Here, Expected Return E(R )Standard Deviation Stock Fund (S)15%40%Bond Fund (B)9%31%Risk Free…
Q: Renter's insurance would include coverage for: O A) earthquake damage. OB) flood damage. C) personal…
A: Renter's insurance is a financial safeguard designed for individuals who rent homes or apartments.…
Q: To start a new business, Alysha intends to borrow $19,000 from a local bank. If the bank asks her to…
A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…
Q: Citigroup, Inc. is estimated to pay dividend of $ 2.4 in 2023, $ 3.0 in 2024. Assume all dividends…
A: A discount rate is a financial technique or a tool that is used to calculate an investment's value…
Q: a. Does IRP hold? IRP -Select- b. According to PPP, what is the expected spot rate of the euro in…
A: We can determine the IRP using the formula below:Since the computed value does not equal the quoted…
Zaliea company produces hat with a variable cost of RM 5,000 for 500 pieces. Each unit was sold at RM 25 and the fixed cost is RM^(35),000. How much is the profit if 10,000 units are sold?
Step by step
Solved in 3 steps
- 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 245,000Kerr 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.
- 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.Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. 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 October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.Delta 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.
- 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?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.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.
- 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?Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling 44,000 shelves for $32 each. Cutrate Furniture approached Jansen about buying 1,200 shelves for bookcases it is building and is willing to pay $26 for each shelf. No packaging will be required for the bulk order. Jansen usually packages shelves for Home Depot at a price of $1.50 per shell. The $1.50 per-shelf cost is included in the unit variable cost of $27, with annual fixed costs of $320.000. However, the $130 packaging cost will not apply in this case. The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the profit if Jansen accepts the special order? A. Profits will decrease by $1,200. B. Profits will increase by $31,200. C. Profits will increase by $600. D. Profits will increase by $7,200.Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs per gas grill are 225, and the average price per gas grill is 600. Required: 1. How many gas grills must Gelbart Company sell to break even? 2. If Gelbart Company sells 46,775 gas grills in a year, what is the operating income? 3. If Gelbart Companys variable costs increase to 240 per grill while the price and fixed costs remain unchanged, what is the new break-even point?