Calculate the total operating costs at the breakeven point

Assignment Help Financial Management
Reference no: EM131067501

Anke Perks is opening an arts and crafts store that focuses on canvases, paints, and pencils. The selling price of a canvas is $24. The variable operating costs are $14 per canvas while the fixed operating costs are $4,000.

a. Calculate how many canvases Anke needs to sell to reach her operating breakeven point.

b. Calculate the total operating costs at the breakeven point based on part a.

c. Anke’s business plan assumed that she would be able to sell 420 canvases per month. Will Anke be able to make a profit at this sales level?

 

d. How much EBIT will Anke generate if she sells 420 canvases per month?

Reference no: EM131067501

Questions Cloud

Dividend yield on this investment : Suppose you purchased 1,100 shares of Pan Ann Airlines at the beginning of the year for $17.22. By the end of the year, the stock price had appreciated to $20.67.
Forecast turns out to be correct and price-to-earnings ratio : Blue Dog Manufacturing Corp. just reported a net income of $11,000,000, and its current stock price is $23.00 per share. If Blue Dog’s forecast turns out to be correct and its price-to-earnings (P/E) ratio does not change, what does management expect..
Problem regarding the escalator running : Both of them move relative to escalator with speed vr = 50 cm/s. If the first boy takes t1 = 250 s and the second boy takes t2 = 50s to reach the first floor, how fast is the escalator running?
What is the purpose of trade sales promotions : Research the products and organization at www.fritolay.com. Identify and discuss the most important issues surrounding the successful use of CRM at Frito-Lay. How does CRM link the marketing and sales functions of the organization?
Calculate the total operating costs at the breakeven point : Anke Perks is opening an arts and crafts store that focuses on canvases, paints, and pencils. The selling price of a canvas is $24. The variable operating costs are $14 per canvas while the fixed operating costs are $4,000. Calculate how many canvase..
Maintain an end of month inventory equal : 1.You feel that these estimates are very uncertain and that the demand for the item miht grow. Due to this concern, you want to maintain an end of month inventory equal to 50% of each approaching month. You expect to begin May with only 100 units ..
What is the expected value of perfect information : George's annual Monkey show has been scheduled for Los Angeles on August 15. The profits obtained in putting on a Monkey show are heavily dependent on the weather. In particular, if the weather is rainy, the show loses $15,000. Ignoring entirely the ..
Calculate the time it takes for the block to hit the wall : When the spring is unstretched the block sits at a distance L = 2.2-m from a wall. Suppose we snap the spring at the very moment the block passes through the equilibrium point towards the wall. Calculate the time it takes for the block to hit the ..
How strategic marketing fits into overall strategic planning : Discuss how Strategic Marketing fits into the overall Strategic Planning process of a health care organization. How can segmentation and targeting be used to develop a successful marketing plan for a health care organization?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd