Calculating costs and break-even-night shades

Assignment Help Financial Management
Reference no: EM131517394

Calculating Costs and Break-Even, Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is $9.64 per unit, and the variable labor cost is S8.63 per unit.

a. What is the variable cost per unit?

b. Suppose NSI incurs fixed costs of S915,000 during a year in which total production is 215,000 units. What are the total costs for the year?

c. If the selling price is $39.99 per unit, does NSI break even on a cash basis? If depreciation is $465,000 per year, what is the accounting break-even point?

Reference no: EM131517394

Questions Cloud

Why it is important to identify specific activities : paper explaining why it is important to identify specific activities, conditions, and people that are threatening to other individuals in the work place
Are individuals carrying out criminal acts simply murderers : Domestic Terrorism Discussion Board- Are the individuals carrying out the criminal acts simply murderers and not terrorists?
Centers for disease control and prevention : Use either a local healthcare agency (i.e., County Health Department, etc.) or healthcare facility (i.e., clinic, hospital, or nursing home).
What are the dollar returns : what are the dollar returns?
Calculating costs and break-even-night shades : Calculating Costs and Break-Even, Night Shades, Inc. (NSI), manufactures biotech sunglasses.
Business continuity and asset protection : Explain the strategy options that may be available in Business continuity planning process and how the Business Continuity Strategy may be optimized
Analyze the problem in the scenario : Write a four to five (4-5) page paper in which you: Define the problem in the scenario that you have chosen. Analyze the problem in the scenario
What is origin or basis of what we consider right and wrong : In your opinion, a) what is the origin or basis of what we consider right and wrong? How do you make ethical choices that reflect your values? Give an example.
First find the market risk premium : Stock A's stock has a beta of 1.30, and its required return is 12.00%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, what is the required rate of retu

Reviews

Write a Review

Financial Management Questions & Answers

  The investment will be depreciated straight line

The initial investment in the project will be $21 million, and the investment will be depreciated straight line, down to a salvage value of $9 million at the end of the fourth year. The revenues are expected to be $24 million next year and to grow 5%..

  What is the expected dividend yield for stock

Portman Industries just paid a dividend of $1.44 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 20.00% over the next year. What is the expected dividend yield for Portman's stock today?

  What is the current stock price

Pasqually Mineral Water, Inc., will pay a quarterly dividend per share of $.80 at the end of each of the next 12 quarters. Thereafter, the dividend will grow at a quarterly rate of 1 percent, forever. The appropriate rate of return on the stock is 10..

  Security analysts expected return on two stocks

Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns: What are the betas of the two stocks? What is the expected rate of return on each stock if the market return is equally li..

  What long run growth rate in dividends is consistent

Investors believe that a certain stock will pay a $4 dividend next year.- What long-run growth rate in dividends is consistent with the current price of the stock?

  Obligation using one-year zero-coupon bond and perpetuity

You will be paying $5,000 a year in tuition expenses at the end of the next 3 years. Bonds currently yield 30%. What is the present value and curation of your tuition obligation? and if you plant to fund your obligation using a one-year zero-coupon b..

  Grandparents purchased them for their face value

If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2054,

  Why an investment tax credit may cause an increase

The policy was used effectively by President Kennedy in the 1960s and President Reagan in the 1980s." - Explain why an investment tax credit may cause an increase in both aggregate demand and aggregate supply.

  Estimate the risk-neutral default rate each year

A company has issue one- and two-year bonds providing 8% coupons, payable annually. The yields on the bonds (expressed with continuous compounding) are 6.0% and 6.6%, respectively. Risk-free rates are 4.5% for all maturities. The recovery rate is 35%..

  Computer based order entry system

Your firm is contemplating the purchase of a new $645000 computer based order entry system. the system will be depreciated straight line to 0 over the course of its 6 year life. it will be worth 58000 at that time. working capital will revert back to..

  What is the firm market value capital structure

Titan Mining Corporation has 8.5 million shares of common stock outstanding, 290,000 shares of 4 percent preferred stock outstanding, and 155,000 7.3 percent semiannual bonds outstanding, par value $1,000 each. What is the firm’s market value capital..

  What value would you expect for alpha

If the market is efficient, what value would you expect for alpha?- Do your estimates support market efficiency?

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