Assume you expect materials costs to increase

Assignment Help Financial Management

Reference no: EM131510753

A company recently reported 400,000 units sold at a price of $60.00 per unit. It also reported its total variable operational costs to manufacture these products were: Materials ($2,400,000), Packaging ($2,000,000), Direct Labor ($1,800,000), Transportation/Delivery ($1,400,000) and other ($100,000). There were other cost including: Advertising ($2,000,000), promotion ($800,000) and General and Administrative Overhead including profit ($600,000). Complete the calculation, including formula -Assume you expect materials costs to increase by 5.0 % of unit price, what would be the new Breakeven Sales per unit figure?

Reference no: EM131510753

Questions Cloud

What is the operating cash flows for each of the three years : The new product has a life span of three years. What is the operating cash flows for each of the three years, the net present value, and the IRR?

Calculate stms value of operations : The company's WACC is 12%. Calculate STM’s value of operations.

Present value-future value and payment : Sara wants to buy a car. She has negotiated a sales price of $24,185 and she has a $4,000 down payment. She is eligible for the full $750 cash rebate.

What will be the total cost of the house : If Sara makes her down payment and takes out the loan described, what will be the total cost of the house?

Assume you expect materials costs to increase : Complete the calculation, including formula -Assume you expect materials costs to increase by 5.0 % of unit price,

Required return on preferred stock-what is value of stock : If the required return on the preferred stock is 5.60 percent, what’s the value of the stock?

Mirha expects to maintain its target capital structure : What is the wacc for this expansion project if Mirha expects to maintain its target capital structure?

What is present value of the savings : If the appropiate interest rate is 7.8 percent, what is the present value of the savings?

Offer for the firm than it is truly worth : how much more will I offer for the firm than it is truly worth?

User Account

All Pages