Calculate the new efn with this assumption

Assignment Help Finance Basics

Reference no: EM13304140

Most assets can be increased as a percentage of sales. For instance cash can be increased by any amount. However, fixed assets must be increased in specific amounts because it is impossible, to buy part of a plant. In this case, a company has a staircase or lumpy fixed cost structure. Assume S&S Air is currently producing at 100 percent capacity. As a result to increase production the company must set up an entirely new line at a cost of $5,000,000. Calculate the new EFN with this assumption.

Reference no: EM13304140

Questions Cloud

How can specializing in lending help to reduce : How can specializing in lending help to reduce the adverse selection problem in lending?

Communication is one important factor : Communication is one important factor in a team as we know either by phone or email it is necessary but sometimes we face different problem in this area because we can send the wrong message maybe to the wrong person or make a mistake by writing the ..

How much value has the greens management added : The firm now has 1000 shares of common stock outstanding, and its selss at a price of 42.00 per share. How much value has the Green's management added to stockholder wealth over the years, ie what is Green's MVA?

What is the gauge pressure at point in the boiler : a u-tube contains mercury with a density of 13,600 kg/m^3. it is open on one end, and the other end is connected to a boiler, what is the gauge pressure at point A in the boiler

Calculate the new efn with this assumption : As a result to increase production the company must set up an entirely new line at a cost of $5,000,000. Calculate the new EFN with this assumption.

Analyse approaches to diversity management : Analyse approaches to diversity management within your scenario organisation - Diversity Management Think back to an organisation where you enjoyed working.

How to derive the unit hydrogaph by the inverse procedure : Given below are the measured stream flows in cfs from a storm of 6-hour duration on a stream having a drainage area of 185 mi^2. Derive the unit hydrogaph by the inverse procedure. Assume a constant base flow of 550cfs.

What is the gravitational energy of the system of masses : three masses are located as follows: a 3.0 kg mass is at the origin, a 4.5 mass at (0.0m, 4.0m), what is the gravitational energy of the system of masses

How much will you have just after you make the 3rd deposit : You want to buy a new sports car 3 years from now, and you plan to save $4,200 per year, beginning one year from today. You will deposit your savings in an account that pays 5.2% interest. How much will you have just after you make the 3rd deposit..

User Account

All Pages